Amsterdam, the Netherlands and Shenyang, China –Royal Philips Electronics (NYSE:PHG, AEX:PHIA) today announced that it 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 (SSE: 600718), 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.
Philips and Neusoft will continue to be partners in the form of components supply and the original equipment manufacturer (OEM) supply of systems. Both companies are committed to a seamless transition that will not disrupt supply of systems to customers. With the exception of the team that will transfer to Philips, all current employees of PNMS will stay at that company.
Imaging systems developed and produced by Philips in China are targeted at the growing value and performance segments of the market, for China and the rest of the world. In China, Philips currently develops and manufactures CT, Magnetic Resonance (MR), Ultrasound (US), Nuclear Medicine and X-ray components and systems at its new manufacturing and R&D site in Suzhou, and Ultrasound transducers in Shanghai.