Royal Philips to make €350m pension fund contribution

Dutch consumer electronics company Royal Philips has announced that it will make a cash contribution of €350m (£293m) on 7 September 2010 to the Philips UK pension fund, as part of the fund’s recovery plan.

This contribution is a funding transaction and, therefore, has no impact on Philips’ earnings.

The trustees of the Philips UK pension fund will use this contribution to purchase from Philips its entire equity stake in semiconductor group NXP.

The sale of NXP shares will lead to a €140m gain that Philips will report under financial income in the third quarter of 2010.