Slaughter and May and a host of additional firms advised Royal Philips Electronics on the transfer of its Lifestyle Entertainment business, which includes Audio, Video, Multimedia and Accessories, to Japan's Funai Electric Co., Ltd. Under the terms, Funai will pay a cash consideration of EUR150m (£128m) and a brand license fee, relating to a license agreement for an initial period of five and a half years, with an optional renewal of five years. The transaction for the Audio, Multimedia and Accessories businesses is expected to close in the second half of 2013 and that of the Video business will be transferred in 2017.

Hong Kong corporate partner Neil Hyman advised Philips on the Hong Kong law aspects of the transaction. There were 15 other firms engaged to provide legal advice and due diligence services to Philips on this complex global transaction which involved businesses around the world.

The firm has advised Philips on a number of previous divestments which have included the transfer in 2011 of its television business into a joint venture with Hong Kong-listed TPV Technology Ltd.

Royal Philips Electronics is a diversified health and well-being company, focused on improving people's lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Philips Audio, Video, Multimedia and Accessories make up the Lifestyle Entertainment business group within Philips Consumer Lifestyle. This business group is headquartered in Hong Kong and employs approximately 2,000 people worldwide. Headquartered in the Netherlands, Philips posted 2011 sales of EUR22.6 billion and employs approximately 122,000 employees with sales and services in more than 100 countries.

Contacts

Neil Hyman (partner)

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