Philips’ €42m from sale
Electronics giant Philips has disclosed a e42m gain from the sale of its in-house Pensions Competence Center.
The company announced it would sell the centre, formerly known as Schootse Poort, to Merrill Lynch Investment Managers for an undisclosed sum in April last year. The deal, under which MLIM would run e12bn for the Philips Pension Fund, was completed in September.
The Philips Pensions Competence Center and Philips Investment Management are now operating under the MLIM name in Eindhoven.
Philips, in its 2005 earnings report, also today disclosed that it would eliminate its funding deficit in its UK defined benefit scheme with an extra e400m contribution in the first quarter of 2006. The impact on company earnings would be “minimal”.
The expected return on pension assets in 2005 was e739m for Dutch plans and e360m for other schemes. Overall pension costs for 2006 were expected to be around e220m.