The private equity consortium led by KKR which bought NXP is selling another 25 million shares in the company. Last month it sold 30 million shares.
The 30 million shares that were disposed of at around $30 each in February were sold to Barclays and Credit Suisse which then sold them on for a relatively small ($7.5 million) profit.
In August 2010, at the first public sale of shares since the 2006 takeover, the PE consortium sold 34 million shares for $14 each raising $476 million.
In March 2011 25 million shares were sold when the share price was around $27.
When KKR bought the company in 2006, it did so at a valuation of $9.4 billion which made the shares worth $26.
NXP has just over 1 million issued shares of which 430 million are common stock and the rest are preferred.
20% of the issued shares are owned by the Philips pension fund.
A full-on disposal of the company seems to be stymied by the high levels of debt still hanging round NXP’s neck.
A full-scale sale of the company is unlikely with that level of debt. Hence the gradual exit by selling small tranches of equity.
NXP’s revenues haven’t grown in six and a half years since being bought by the PE consortium and it is loss-making.
