AGM also approves dividend proposal and appointment of David Pyott as a new member of Supervisory Board
Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA) announced that today’s Annual General Meeting of Shareholders (AGM) has approved the separation of the Lighting business from Royal Philips. Following the vote in Amsterdam, Royal Philips will continue the process to set up two market-leading independent companies that will focus on the vast opportunities in health technology and lighting solutions.
“We welcome the decision by the AGM to approve the separation of our Lighting business from Royal Philips and I fully appreciate the historic significance of today’s meeting,” said Frans van Houten, Philips Chief Executive Officer. “Both our multi-billion euro HealthTech and Lighting Solutions businesses have the right fundamentals for profitable growth in their fields.”
The transition of the Lighting business into a separate legal structure will take at least until the end of 2015, in order to be ready for the separation, which is currently intended to be effectuated through an IPO in the first half of 2016. At the same time, alternatives will continue to be carefully reviewed.
The AGM also approved the proposal to re-appoint Frans van Houten, Ron Wirahadiraksa and Pieter Nota as members of the Board of Management for a term of four years. The proposal to appoint David Pyott as a new member of the Supervisory Board was also approved, as well as the re-appointments of Jackson Tai, Heino von Prondzynski and Kees van Lede as members of the Supervisory Board.
Philips’ proposal to pay a dividend over 2014 of EUR 0.80 per share in 2015 was also approved by the AGM. The dividend will be paid in cash or shares, at the shareholder’s option. More information about the optional dividend can be found here.
In addition, the AGM has adopted the proposal to appoint Ernst & Young Accountants LLP as external auditor of Philips from January, 2016. All other proposals made to shareholders at the AGM were also approved.