In a notice to the stock exchanges, the consumer electronics major said the deal will fetch it Rs 32.5 crore and is subject to the approval of shareholders at their annual general meeting on May 28.

BC Components India is a proposed subsidiary of Holland-based BC Components International BV (Netherlands). The notice says the sale is part of the global business strategy of Philips Dutch parent, Royal Philips Electronics, to get out of non-ceramic passive components or plastic moulds in plain language.

The company said the Dutch parent had announced in September 1998 its decision to focus on ceramic components for use in high-volume electronics.``The consideration for the undertaking shall be Rs 325 million subject to any change in the value of the net operating capital of the undertaking from December 31, 1998,'' the company said.

The sale of the Loni unit was the second resolution put up by the management at the extraordinary general meeting held here on December 4 last year. However, when the meeting opened, the management dropped the resolution without citing any reason.

The other resolution was regarding the sale of the Salt Lake factory here, which makes colour televisions, to a nominee of Videocon International Ltd. This proposal got Philips embroiled in a legal battle with its unions and some shareho-lders.

The matter was scheduled to come up before a division bench of the Calcutta high court today, but was postponed to Wednesday.