Philips to spin off lighting division in IPO

Dutch electronics group Philips is planning an initial public offering of its lighting business in 2016, reports Wall Street Journal. This follows the announcement made in September about the company splitting into two and spinning off its lighting branch. In a memo to its shareholders, the company announced it would only sell a minority interest in the business at initial stages, with the intention of complete divestment over time. The shareholders will vote on the separation on May 7. It has not been stated how much Philips is expecting to receive from the IPO. The company said that it expected the spinoff to help each company better focus on their own operations. Philips previously received criticism that its current corporate structure is holding its businesses back. The lighting business spinoff resembles the move made by German engineering giant Siemens. In 2013 it listed Orsam Licht AG, its lighting business, after separating it from the rest of the company.