Philips 2012 Annual Report Download - page 178

35 12 Group financial statements 12.11 - 12.11
178 Annual Report 2012
in the aggregate. New contracts were signed on December 31, 2012,
for the coming year, whereby the re-insurance captive retentions
remained unchanged.
35 Subsequent events
Transfer of Audio, Video, Multimedia and Accessories
businesses to Funai
On 29 January 2013, Philips signed an agreement regarding the transfer
of its Lifestyle Entertainment business (Audio, Video, Multimedia and
Accessories) to Funai Electric Co., Ltd. (Funai). Under the terms of this
agreement, Funai will pay a cash consideration of EUR 150 million 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. Currently
these businesses belong to the operating sector Consumer Lifestyle.
The deal for the Audio, Video, Multimedia and Accessories businesses is
expected to close second half of 2013. The Video business is expected
to transfer in 2017, related to existing intellectual property licensing
agreements. The gain on the transaction will be recorded at the closing
date.
The transaction is subject to customary conditions, including regulatory
and works council procedures.
Renewal of EUR 1.8 billion stand-by facility
On 18 January 2013, the Company extended its EUR 1.8 billion stand-
by facility for 2 years until February 18, 2018. The facility has no financial
covenants and repetitive material adverse change clauses and can be
used for general corporate purposes.
Philips intends to sell its shareholding in Philips-Neusoft
Medical Systems joint venture to Neusoft Medical Systems
On February 5, Philips announced that is has entered into a term sheet
to sell its 51 percent shareholding in the Philips-Neusoft Medical
Systems (PNMS) joint venture between Philips and Neusoft Medical
Systems, a subsidiary of Neusoft Corporation, in Shenyang, China, to
Neusoft Medical Systems and its overseas associates.
As part of the proposed agreement, a team of approximately 100 to
150 Computed Tomography (CT) system and component engineers
and supporting staff will transfer from the joint venture to a new
development center of Philips in Shenyang.
Financial details of the proposed transaction were not disclosed. The
signing of the definitive agreements and subsequent closing is expected
to take place before the end of 2013. The closing of the transaction is
subject to the relevant shareholder and regulatory approvals.