Philips outlined its intention of offering an initial public offering (IPO) for its lighting business in a recent annual shareholders agenda press release.

“In view of the sharpening of Philips’ strategic focus announced on September 23, 2014, the voting items on the AGM agenda include the separation of the Lighting business from Royal Philips,” stated Philips. “It is the current intention to effectuate the separation of the Lighting business through an Initial Public Offering, but other options will continue to be reviewed.”

“I get the impression that, because of lighting’s history, Philips wants to pursue what offers the best perspectives for the division, and not particularly value maximization,” a Bloomberg report quoted Robin van den Broek, an analyst at ING Groep NV in Amsterdam saying.

Five financial analysts estimated the total value of Philips lighting business is estimated to average about 25.5 billion Euros ($28.9 billion). Philips is expected to cut another 8.5 billion-Euros from restructuring and other costs.

As for developments in Philips lighting component unit business, the Dutch conglomerate is expected to be selling 60% to 80% of its stake during the spin-off. Philips expects bids to end by the end of March in an effort to complete the disposal by mid-2015. The holding will be valued at 2.4 billion euros.

The company will be executing individual sale plans for the lighting and lighting component units because the businesses lack a strategic fit, said Philips CEO Frans van Houten in January.