By Maarten van Tartwijk
AMSTERDAM--Koninklijke Philips NV (PHIA.AE) on Thursday moved a
step closer to splitting itself into two after investors approved a
plan to spin off the company's nearly 124-year-old lighting
business.
Shareholders voted almost unanimously in favor of the split at a
meeting in Amsterdam, clearing the way for what will likely be an
initial public offering for the lighting business. Philips has said
the listing could occur in the first half of 2016.
The plan echoes a decision by Siemens AG (SIE.XE), the German
engineering giant, which in 2013 listed its Osram Licht AG lighting
business. Philips Lighting and Osram compete with the lighting
division of U.S.-based General Electric Co. (GE).
The separation of the lighting business would mark the end of an
era for Philips, which was founded on May 15, 1891, as a producer
of light bulbs. The lighting arm laid the foundation for Philips's
growth into one of Europe's largest industrial companies in the
20th century.
"It was an emotional decision and it was not taken lightly. But
I believe that this is the right next step," Chief Executive Frans
van Houten said. "We should not be sentimental about our
heritage."
Philips announced the plan in September following a series of
profit warnings and criticism that its corporate structure was
slowing it down. Once the lighting business is divested, the
company will focus on selling medical equipment, such as hospital
scanners, and consumer electronics products, such as coffee
machines and electric toothbrushes.
Mr. van Houten said the lighting business, Philips's
second-largest division with 6.87 billion euros ($7.8 billion) in
sales in 2014, will be better able to grow as a standalone
company.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
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