The LED related part of the assets of the acquisition of OSRAM to give up

Elec-Tech recently announced the company formally notified OSRAM to abandon the acquisition of traditional light source and light source of LED assets. From planning to buy OSRAM for Elec-Tech traditional light source and light source of LED assets, suspended since August 26, 2015 to date, after several rounds of negotiations with OSRAM, signed a confidentiality agreement. During the period, for security related work smoothly, Elec-Tech with a national industry fund reached a preliminary cooperation agreement acquisition, the main agency also invited internationally renowned investment bank Merrill Lynch as this asset acquisition.

And at the beginning of this year, the appointment of intermediaries to the value of the proposed sale of OSRAM lighting to complete the preliminary assessment, and on January 15, 2016 (Beijing time) submitted a non binding letter to OSRAM. After that, OSRAM and the company to hire an intermediary to open its operations, financial data until recently closed. In the meantime, the company hired the agency to carry out detailed work as adjustment and assessment; at the same time, on behalf of the company and OSRAM had a full communication between the two sides in Hongkong, Germany held a number of meetings and telephone conference site. However, after several rounds of negotiations, the two sides in the business, business conditions, and ultimately failed to reach agreement.

Elec-Tech said the reason for the termination of this major asset purchase matters is the company submitted non binding offer letter to OSRAM, the two sides launched a cooperation details several in-depth communication and negotiation, but the two sides have considerable differences in the aspects of business, business conditions etc.. After careful assessment, the company believes that this asset acquisition is difficult to achieve the desired synergies; in view of this, the company decided to give up.

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