Philips sells 4.64 crore LG.Philips LCD shares

Royal Philips Electronics has sold 4.64 crore shares of common stock in LG.Philips LCD Co. Ltd (LPL) to financial institutions in a capital markets transaction. This transaction represents 13 per cent of LPL's issued share capital, reducing Philips' holding to 19.9 per cent.

The transaction will provide Philips with net proceeds of approximately Rs.8,858.18 crore ($2.19 billion) and is expected to result in a non-taxable gain of approximately Rs.2,863.74 crore ($708 million) in Q4 2007. As part of the transaction, Philips may decide to sell additional shares to the same financial institutions later today to meet additional demand, if any.

This transaction is in line with Philips' communicated strategy to further reduce its holding in LPL in a structured and responsible manner, as the company has already done with other financial holdings.