Feeling chipper

8 October 2003 By Robert Cyran Follow @rob_cyran

The Dutch electronics firm needs cash after difficulties in its semiconductor arm. The company would be better off imitating Motorola and ridding itself of its chips division.

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Philips is planning on offering 500m common shares of Taiwan Semiconductor. The companies plan to offer the shares on the US market in the form of 100m ADS (one ADS = five common shares of Taiwan Semiconductor). Based on current values, the shares will be worth slightly less than E1bn. The company stated that it plans to use the cash for general corporate purposes and to pay off debt.

Philips currently holds 21.5% of Taiwan Semiconductor. If Philips sells the shares, its holding will be reduced to 19.1%. The company plans further sales at an indeterminate point.

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