Royal Philips Electronics ("Philips") (AEX: PHI, NYSE: PHG) announced that its secondary offering of 528,010,000 common shares in the form of American Depositary Shares (‘ADSs’) in Taiwan Semiconductor Manufacturing Company Ltd. ("TSMC") (TAIEX: 2330, NYSE: TSM) has been priced at USD 8.60 per ADS. Each ADS represents five TSMC common shares.

After the closing of this transaction, which is scheduled for August 10, 2005, Philips will receive gross proceeds of approximately EUR 715 million and book a non-taxable gain of approximately EUR 420 million in its earnings for the third quarter of 2005. Philips retains a holding of approximately 4,105 million TSMC shares, representing a reduction in Philips’ stake in TSMC from 18.7 to 16.6 percent.

This offering was first announced on May 10, 2005. Following this transaction, Philips has agreed not to sell additional TSMC shares before the end of 2006, either in Taiwan or international markets. Philips will therefore remain among the largest shareholders in TSMC for the foreseeable future.

The underwriters have also been granted a 30-day option to purchase up to 15 percent additional common shares in the form of ADSs to cover over-allotments, if any. If the over-allotment option is exercised in full, Philips’ holding in TSMC will be reduced further to 16.3 percent, and Philips will receive additional gross proceeds of approximately EUR 105 million and book an additional non-taxable gain of approximately EUR 60 million in its earnings for the third quarter of 2005. The over-allotment option expires September 4, 2005.

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world’s biggest electronics companies and Europe’s largest, with sales of EUR 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,700 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter.

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Bron : Philips