Philips sells $2.5B share of TSMC
By Suzanne Deffree, News Editor -- EDN, May 9, 2007
Royal Philips Electronics continued with its plan to sell off its stake in Taiwan Semiconductor Manufacturing Co. Ltd., today announcing the offering of 1.2 billion TSMC common shares.
The offering comes in the form of 240 million American Depository Shares, with a value of approximately $2.5 billion based on TSMC’s share price on May 7.
The move is the latest in Philips’ effort to distance itself from the semiconductor world. After selling off its semiconductor arm in September 2006 and rebranding it NXP, Philips announced on March 9 its plan to sell off its shares in the top foundry. Just days later on March 12, the company announced it has sold approximately 887 million shares of TSMC common stock to long-term financial investors in Taiwan in a $1.7 billion deal.
In today’s joint statement from Philips and TSMC, the companies announced that TSMC has filed a registration statement with the U.S. Securities and Exchange Commission in connection with an offering of TSMC shares held by Philips.
Currently, Philips holds 3.3 billion TSMC shares, or approximately 12.8 percent of TSMC, a total stake worth about $6.7 billion.
The offering is subject to all necessary regulatory approvals and to market conditions.
