Philips sells Loni unit

The division is involved in the manufacture of a range of conventional and non-ceramic passive components such as resistors, electrolytic, film capacitors, potentiometers, trimmers and gang condensers used in automobile, analog electronics,telecom and consumerelectronics.

According to the Philips India press release:8220;Philips and Compass expect to close the transaction by early 1999. Financial details are not being disclosed. All employees will be transferred to the new entitty under the current management structure.8221;

The press release adds that Royal Philips Electronics NV. of Netherlands has announced this decision to focus on ceramic components for use in high volume electronic applications, which is part of the Philips components division.

The disinvestment of the components business group will take place subject to obtaining necessary approvals from shareholders and the government. 8220;For Philips, the divestment allows us to focus on ceramic components for use of high volume elctronic applications, notably audio, televison, consumers communications and PC related systesm, in which digigtal technolgy is increasingly important,8221; says YC Lo, Chairman and CEO, Philips Components.