Singapore

GIC, CDH Investments partner for Philips’ home appliances bid

They will submit a joint offer for the US$3.6b home appliance business.

Sovereign wealth fund GIC has teamed up with Chinese asset manager CDH Investments to submit a joint offer for the US$3.6b home appliance business of Philips, Reuters reported.

Amongst the duo’s competitions are Asia-focused private equity firm Hillhouse Capital and a consortium of Citic Capital, Sequoia and TCL Capital, the sources said on anonymity.

Philips has put pressure on the bidders to finalise their binding offers by the end of March and has raised the prospect of ditching the sale and pursuing an alternative listing of the business. The sale is a central part of its transformation into a health technology business focused entirely on hospital equipment and personal health products.

The home appliance unit is valued at US$3.64b. Philips appeals to Asian bidders amidst the bulk of its manufacturing operations taking place in China, the sources said.

The auction process was kicked off last year, and the tech giant wants it to wrap up by the end of Q1 2021.

Whilst some of the bidders may face delays in completing due diligence and securing financing, CDH is determined to snap up the unit and has teamed up with GIC which already owns stakes in Western companies, one of the sources said.

Here’s more from Reuters


Source link

Related Articles

Back to top button