Seagram acquired substantially all of the outstanding PolyGram shares. On that date, Philips received NLG 11,531 million in cash and 47,831,952 Seagram shares representing approximately 12% of the outstanding Seagram shares. The sale of PolyGram resulted in a gain of NLG 10,675 million, or NLG per share, free of taxes. In order to gain insight into the Company’s cash flows, earnings capacity and financial position, the information about discontinued operations has been segregated from the information about continuing operations. The financial information relating to PolyGram, being a separate product sector, has been excluded from the respective captions in the consolidated financial statements and related notes, and is.
