LONDON Royal Philips Electronics has completed the sale of an 80.1 percent stake in its semiconductors business to a private equity consortium consisting of Kohlberg Kravis Roberts & Co. (KKR), Silver Lake Partners, Bain Capital, Apax Partners and AlpInvest Partners NV.
The deal, which was announced last month, means Philips will receive, after payment of taxes, approximately Euros 6.4 billion ($8.1 billion) in cash.
The transaction puts the enterprise value of the entire stand-alone semiconductors company now known as NXP at approximately Euros 8.3 billion ($10.5 billion).
Following completion, Frans van Houten, President and CEO of NXP, relinquishes his position as member of the Board of Royal Philips Electronics.
Philips will now treat its semiconductors activities as "discontinued operations" in the company's financial reporting as of Philips' 2006 Third Quarterly Report, to be published on October 16, 2006.