CHICAGO-Royal Philips Electronics today announced the sale of 30 million shares of common stock in Navteq Corp., a provider of digital maps for vehicle navigation and location-based solutions, by its subsidiary Philips Consumer Electronic Services. Philips will gain about $1.13 billion on the sale and will book a nontaxable gain of about $880 million in its second-quarter earnings.
Navteq said the shares would be offered in a secondary public offering of 30 million shares of Navteq common stock at $37.50 per share. Navteq’s common stock is listed on the New York Stock Exchange under the symbol NVT.
Philips said the offering of Navteq shares was announced March 29. Upon closing of the transaction, scheduled for May 10, Philips will still own about 3.5 percent of Navteq’s outstanding share capital.
Philips has granted the underwriters a 30-day option to purchase up to 3.1 million additional shares of common stock to cover over-allotments, if any. If the over-allotment option is exercised in full, it will provide Philips with additional gross proceeds of about $116 million and a non-taxable gain of $90 million. If the over-allotment option is exercised, Philips would hold no interest Navteq. The option expires June 3.
Merrill Lynch, Pierce, Fenner & Smith Inc., Deutsche Bank Securities Inc., Lehman Brothers Inc. and UBS Securities LLC served as the joint book-running managers for the offering.
