Philips won their case against Japan’s Funai Electric in arbitration court. The court ordered Japan’s Funai to pay Philips 135 million euros, over the failed 2013 purchase deal; whereby Funai, were going to purchase Philips Lifestyle Entertainment Division. This, according to DFT (De Financiele Telegraaf newspaper).
According to Philips, the court’s ruling, brings now a definite close to the case. The 135 million euros will be booked in the second quarter and will have a positive effect on the net profit.
Initially, Philips made a deal with Funai in 2013, whereby their audio and video branch was going to be outsourced. Later on, Philips stopped the negotiations, because Funai did not keep their part of the deal. Meanwhile, the branch has been sold to the American company, Gibson Brands.
Translation: Galit Diepens