NEW YORK/AMSTERDAM, March 27 (Reuters) - Dutch semiconductor company NXP, owned by private equity investors including KKR, Silver Lake and Bain Capital, is planning an initial public offering (IPO), two people familiar with the matter said.
A potential IPO could raise about $1 billion, one of the sources said.
NXP was spun off from Koninklijke Philips Electronics NV in 2006 in a leveraged buyout. A consortium of private equity investors comprising Silver Lake, Kohlberg Kravis Roberts & Co, Bain Capital, Apax and AlpInvest Partners, bought a 80.1 percent stake in the company.
The banks and private equity firms either declined comment, or could not be reached. NXP and Philips declined to comment.
Philips said in January its remaining 19.8 percent stake in NXP had a value of 207 million euros ($275.9 million) as of December 2009, implying a valuation for the whole company of more than one 1 billion euros.
KKR has already written down its stake in NXP substantially, saying in December that the fair value of its investment was $75 million on a cost of $250 million.
NXP's Chief Executive Rick Clemmer told Reuters earlier this year that he expected sales to be flat to slightly higher during the first quarter, but was waiting for more clarity about the market in the second half.
Private equity firms buy companies with the aim of exiting them a few years later, either through a sale or an initial public offering. During the financial crisis, leaving investments was very difficult, but the markets have opened up recently, allowing some firms to exit.
(Reporting by Megan Davies and Jui Chakravorty in New York and Greg Roumeliotis and Harro ten Wolde in Amsterdam; editing by Paul Casciato)
((megan.davies@thomsonreuters.com ; +1 646 223 6112; Reuters Messaging: megan.davies.thomsonreuters.com@reuters.net))($1=.7502 Euro) Keywords: NXP/ (For more M&A news and our DealZone blog, go to http://www.reuters.com/deals) 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.
A potential IPO could raise about $1 billion, one of the sources said.
NXP was spun off from Koninklijke Philips Electronics NV in 2006 in a leveraged buyout. A consortium of private equity investors comprising Silver Lake, Kohlberg Kravis Roberts & Co, Bain Capital, Apax and AlpInvest Partners, bought a 80.1 percent stake in the company.
The banks and private equity firms either declined comment, or could not be reached. NXP and Philips declined to comment.
Philips said in January its remaining 19.8 percent stake in NXP had a value of 207 million euros ($275.9 million) as of December 2009, implying a valuation for the whole company of more than one 1 billion euros.
KKR has already written down its stake in NXP substantially, saying in December that the fair value of its investment was $75 million on a cost of $250 million.
NXP's Chief Executive Rick Clemmer told Reuters earlier this year that he expected sales to be flat to slightly higher during the first quarter, but was waiting for more clarity about the market in the second half.
Private equity firms buy companies with the aim of exiting them a few years later, either through a sale or an initial public offering. During the financial crisis, leaving investments was very difficult, but the markets have opened up recently, allowing some firms to exit.
(Reporting by Megan Davies and Jui Chakravorty in New York and Greg Roumeliotis and Harro ten Wolde in Amsterdam; editing by Paul Casciato)
((megan.davies@thomsonreuters.com ; +1 646 223 6112; Reuters Messaging: megan.davies.thomsonreuters.com@reuters.net))($1=.7502 Euro) Keywords: NXP/ (For more M&A news and our DealZone blog, go to http://www.reuters.com/deals) 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.