Philips to sell stake in semiconductor unit for $8.2b

Royal Philips Electronics has agreed to sell an 80.1% stake in its semiconductor unit to a private equity group for 6.4 billion euros ($8.2 billion), an Associated Press report said.

The report said the consortium, made up of US-based private equity firms Kohlberg Kravis Roberts, and Silver Lake Partners along with Dutch-based AlpInvest Partners NV, would buy the stake, while Amsterdam-based Philips would retain the rest of the business, Philips said in a statement.

The deal included the assumption of 4 billion euros ($5.1 billion) in debt, and valued the 19.9% stake Philips was keeping at 900 million euros ($1.15 billion).

After taxes and fees, Philips said it expected to clear about 6.4 billion euros ($8.2 billion) cash from the sale.

Philips was the world's ninth largest maker of semiconductors by sales last year, the report said.