NXP’s private equity investors to sell their remaining shares
1 min read
Eight years after it paid $6.4billion for an 80% share in what was Philips Semiconductors, an investment group led by KKR and Bain is placing more than 17million shares in NXP on the market for $60.35 per share. The offering, which will see the private equity investors cutting their links with NXP, is expected to close on 19 May. NXP will not see any revenue from the sale.
The move is the latest in a range of share transactions, which have included NXP buying back significant numbers of its shares. In 2010, the investment group raised around $476m from an IPO on the New York market, but the share price was less than it had hoped for – the IPO was originally designed to raise $1.15billion.
In 2011, rumours circulated briefly, claiming NXP was to be bought by one of Intel, Qualcomm or Broadcom. Whilst he dismissed the rumours – which were obviously unfounded – chief executive Rick Clemmer, pictured, said he would be open to offers if the price was right. The rumours were hard on the heels of Texas Instruments' acquisition of National Semiconductor.
"National Semiconductor got a good deal," he said, "and I would consider talks at an 80% premium or between $55 to $60 per share."
