Audio over 1 billion acquisition of Sylvania lighting giant

Securities Times News Audio (600651) in the field of LED lighting overseas mergers and acquisitions to gain another victory. Today, the company announced plans to acquire assets, cash to acquire Havells Malta Limited (HML) through the integration of 80% shares and Havells Exim Limited (Exim) of the shares of 80%. Company shares continue to be suspended.

Acquisition of international lighting giant

Audio in this acquisition is taken up by the listed company established overseas SPV (Special Purpose Company), direct acquisition of foreign assets of the way. The company intends to special purpose vehicle INESA UK Limited by a wholly owned subsidiary of Shanghai Feile Investment Co. Ltd. in the U.K. (UK SPV) intends to cash a 138 million euros acquisition of HML by the integration of 80% of the shares; at the same time, through investment in cash is expected to be Feile 10 million 400 thousand euros to buy Exim80 shares%, the total price of about 149 million euros (about 1 billion 48 million 870 thousand yuan).

In addition, the two sides also designed for the acquisition of the divestiture program, that is, in the transaction before the delivery of the 4 shares of the company indirectly stripped HML shares. The 4 subsidiaries are located in Thailand, Brazil, the United States and Chile, in the local market operation and sales of the brand related lighting products, but long-term poor management, successive losses.

Announcements, the subject of the company HML indirectly holds Havells Netherlands100% shares, which controlled by a number of Holding Company operating entities Havells hi thousand years. Havells, founded in 1901, is a global leader in lighting technology with a history of over 100 years. Havells hi million has three brands, SYLVANIA, Lumiance and Concord, respectively, focused on retail home and large lighting projects and other markets. As of the announcement date, Havells hi million sales network in 48 countries around the world, with 500 sales and marketing staff, and the more than 6 thousand dealers. The transaction is one of the main targets of the company is responsible for the Havells Exim million years to provide procurement and working capital support. Exim's main business is to provide procurement services to Havells hi million, and increase the sales of 1.6% to Havells hi million subordinate enterprises.

The financial data show that the underlying assets of the year 2013, year 2014 and 2015 1-6 month were achieved operating income of 376 million euros, 389 million euros and 196 million euros, net profit was -2449 million euros and 9 million 605 thousand euros and 424 thousand euros. As of the valuation date, the underlying assets of all shareholders equity value of 189 million 500 thousand euros, compared with the size of the book after the merger of the company's equity attributable to the parent company's equity appreciation of EUR 135 million 156 thousand, value-added rate of 248.70%. After consultation by the parties to the transaction, the final transaction price of about 149 million euros.

Audio said that through this transaction, the company will have the product brand, sales channels and production base, greatly enhance the company's brand influence, expand market sales channels and improve the production capacity, making the company further diversified business globalization; at the same time the company gradually through mergers and acquisitions to become the extension of Globalization lighting enterprises, makes the endogenous industry and the extension of mergers and acquisitions to achieve profit high speed synchronous growth. At the same time, the target company's assets will be included in the consolidated statements of listed companies, the company's operating income is expected to increase the size of the larger.

Strong global market expansion

At the end of last year, audio acquisition of Beijing Shenan group 100% equity case approved by the commission. In the establishment of "global strategic planning services platform", since this year, after the success of the reorganization of the audio frequent sea".

Review audio "sea" process, the company announced on the evening of January 30th, a wholly owned subsidiary of Beijing Shenan Investment Group Limited company and the French ARELIS group, France signed the "Sino French Meuse to jointly promote the French green lighting energy-saving agreement", plans to invest a total of 3 billion euros.

In April 13th, the general manager of the company Shenan Zhuang and R20 International Regional Climate Action Group Chairman Arno Schwarzenegger in Shanghai signed a "strategic cooperation agreement. According to the agreement, R20 international regional climate action organization will support audio implementation of low-carbon green lighting project, in the promotion and development of the world.

In May, the company has signed a cooperation agreement with the Hungarian security products supplier KABAZrt., OKOstore Ltd and NumerusKft group, to accelerate the company's "sub brand" LED products in the international market promotion; in June 22nd the company announced plans to expand the Brazil lighting market by PPP model. Subsequently, audio on the evening of July 21st announcement, intends to Germany OSRAM issued a non binding letter, the company wants to acquire OSRAM plans to spin off channel business.

In recent years, the domestic lighting companies continue to accelerate the pace of overseas mergers and acquisitions, to 2015 is still hot. This year in addition to audio strong layout of the overseas market, many domestic lighting enterprises also launched a well-known enterprises in overseas acquisitions.

For example, a Jinsha River investment led consortium $3 billion 300 million multinational acquisition of Holland Royal PHILPS lighting lighting company's 80.1% stake in Lumileds; the development of crystal subsidiary Waterhouse & $130 million acquisition of U.S. BridgeLux100% shares; as with the audio on the OSRAM, Linsen plans to spin off channel business interest.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).