Lights out: Philips to launch IPO for lighting division

Royal Philips NV says it is spinning off its iconic lighting division in an initial public offering so it can focus on its future as a health technology provider.

Philips said early Tuesday that the listing on Amsterdam's Euronext stock exchange will involve the company selling at least 25 percent of its stock in Philips Lighting, which had sales of 7.5 billion euros ($8.7 billion) in 2015.

Philips CEO Frans van Houten calls the decision "historic" for the Dutch company that made its name selling light bulbs before branching into other consumer electronics and the health care products. After the IPO, Philips aims to sell the remaining shares in its lighting division over the coming years. The price of the stock and exact timing of the IPO were not announced.