New York : NXP BV, the Dutch chipmaker bought by KKR & Co four years ago, plans to raise at least $1 billion (Dh3 billion) to cut debt in a deal that would be this year's largest initial public offering, two people with knowledge of the matter said.
NXP hired Morgan Stanley, Barclays, Credit Suisse Group, Deutsche Bank and Goldman Sachs Group to run the stock sale, according to the people, who asked not to be identified because the talks are private.
KKR, Silver Lake, Alp-Invest Partners, Bain Capital and Apax Partners acquired an 80.1 per cent stake in the firm from Royal Philips Electronics in 2006, in a multi-stage deal valuing the company at 8.3 billion euros (Dh40 billion), including debt. KKR said in December its NXP investment was worth 30 cents on the dollar.
Kristi Huller, a KKR spokeswoman in New York, declined to comment on the potential IPO. Spokesmen for the five banks also declined to comment.
Buyout shops have been trying to take companies public to use the proceeds to pay down debt.
