AMSTERDAM, Sept 7 (Reuters) - Dutch electronics group Philips on Tuesday said it will sell its remaining equity stake in chipmaker NXP Semiconductors NV to its underfunded British pension fund.
Philips said it would make a cash contribution of 350 million euros to the pension fund, which the fund would then use to buy the 17 percent of NXP the Dutch firm still owns.
The sale will lead to a 140 million euro gain in the third quarter, Philips said.
NXP was created in 2006 when a private equity consortium bought Philips' chipmaking unit. The company listed on the stock market in New York last month in an initial public offering that raised less money than planned.
NXP shares closed Monday at $11.89, down 15.1 percent from where they priced on Aug. 5.
Philips said in its 2009 report that it was reviewing funding needs for its U.S. and UK pension funds, both of which had deficits. It did not specify how large the UK deficit was.
(Reporting by Ben Berkowitz; Editing by Erica Billingham) Keywords: PHILIPS/ (ben.berkowitz@thomsonreuters.com; +31 20 504 5011; Reuters Messaging: ben.berkowitz.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Philips said it would make a cash contribution of 350 million euros to the pension fund, which the fund would then use to buy the 17 percent of NXP the Dutch firm still owns.
The sale will lead to a 140 million euro gain in the third quarter, Philips said.
NXP was created in 2006 when a private equity consortium bought Philips' chipmaking unit. The company listed on the stock market in New York last month in an initial public offering that raised less money than planned.
NXP shares closed Monday at $11.89, down 15.1 percent from where they priced on Aug. 5.
Philips said in its 2009 report that it was reviewing funding needs for its U.S. and UK pension funds, both of which had deficits. It did not specify how large the UK deficit was.
(Reporting by Ben Berkowitz; Editing by Erica Billingham) Keywords: PHILIPS/ (ben.berkowitz@thomsonreuters.com; +31 20 504 5011; Reuters Messaging: ben.berkowitz.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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