Philips sells TSMC, MedQuist shares

Royal Philips Electronics has announced the sale of approximately 383 million shares of the common stock in Taiwain Semiconductor Manufacturing (TSMC) to long-term financial investors.

It said this divestment will provide the firm with funds of around 455 million euros (360 million pounds), with a non-taxabale gain of approximately, 260 million euros in its financial results due for the third quarter of the year.

This deal marks the end of the multi-phased agreement signed by both companies in March 2007 to enable Philips to exist from its shareholding in TSMC in an orderly manner.

The company has also sold its 69.5 per cent stake in MedQuist to CBaySystems Holdings for a sum of around $285 million (153 million pounds).

Financial results from this deal will be listed under discontinued operations in the firm’s third-quarter results.

“Pursuant to the stock purchase agreement, the directors of MedQuist appointed by Philips have stepped down,” the company said.

Cbay Systems will use the MedQuist acquisition to complement its existing portfolio in healthcare technology, healthcare financial services and medical transcription.

Last month, Philips reported robust sales figures and an increase in earnings for the second quarter of the 2008 fiscal year, with the company generating a six per cent rise in year-on-year sales to 6.5 billion euros for the period.