FSL and major shareholder OSRAM upgrade

Did not wait until the LED technology into FSL, but ushered in its first major shareholder of OSRAM's more aggressive offensive. 3, 2009, as the world's top second suppliers of lighting appliances OSRAM announced its expansion plans in Foshan and substantial progress, the new plant officially put into operation in the production of two.

The competition intensifies, the market rumors of two equity cooperation has to fall apart the edge, but analysts said the possibility of the separation of the two is very small, as the Buddha shareholder is still hard to change. 3, 2009, according to the micro rise of 0.88%, to close at $8.04.

Huge capacity competitors

As a direct competitor, marriage did not let the Buddha and the opposition to resolve OSRAM. Allegedly, OSRAM entered the Buddha in 2005, is fancy its production scale and base, hoping to turn it into a production base in the Asia Pacific region, but the latter was in conflict.

As the Buddha does not make choice to enhance their cooperation, OSRAM Foshan plant capacity in 2007, the four year expansion plan in 2010 is expected to total investment reached 400 million yuan, but refused to disclose the expansion in Foshan factory can achieve the capacity of OSRAM.

OSRAM has made it clear that the Foshan plant will be built as one of the world's largest production and R & D base. Buddha was abandoned again.

Bilateral cooperation has entered a deadlock

Although fozhao chairman Zhong Xincai has publicly expressed on major shareholder dissatisfaction, but OSRAM's global CEO Gu Zile still use "strategic investment" is very important to evaluate the cooperation between the two. "In accordance with the agreement, we will purchase a large number of products per year, according to the agreement, and provide some technology within the scope of the license." Although Gu Zile doesn't address is provided which technology, but it is certain that the Buddha as the most desire of LED (new energy-saving lamp) technology is not within the scope of share. "At present, we are discussing with the Buddha, to provide some LED products to them." Gu Wei stressed that LED products rather than technology. OSRAM can only enter their own technology into more than 51% stake in the company." Obviously, according to the Buddha does not meet the conditions, combined with the Buddha Zhao do not want to be overweight foreign shareholders' position, the cooperation between the two sides has entered the impasse. At present, the Buddha as revealed in the overseas search for LED technology partners, the main goal is to Japan and South Korea enterprises.

OSRAM and OSRAM holdings becomes difficult as the Buddha. To some extent, confirms the saying of ".". There are people who understand the Buddha as the Buddha was revealed to the author, according to restructuring, Zhong Xincai intends to implement MBO (MBO), but in the end, the Foshan municipal SASAC will hold its 23.97% fozhao state-owned shares were transferred to OSRAM holdings and Hongkong Youchang lighting equipment Co., Ltd., the former holds 13.47% to become the largest shareholder.

But because there is no technical cooperation, resulting in the original part of the business competition between the two contradictions intensified. With OSRAM to build their own factories to enhance production capacity, according to the Buddha to seek technical support in Japan and South Korea, the two have their own decree that market rumors that OSRAM's largest shareholder status may change. In this regard, according to Lin Yihui, director of the Buddha yesterday in an interview with reporters, said only to prove that all depends on the announcement".

However, the market veteran Junshan pointed out that, for the time being, unless the conflict continues to deepen, otherwise it will not affect the change in equity. OSRAM and Buddha according to the possibility of separation is not, because the two have common interests in many projects.