Three if successful acquisition of OSRAM, LED industry trends change?

An optoelectronic intends to buy German lighting giant OSRAM (OSRAM Licht AG) news in Europe spread, sparked shock.

However, TrendForce LEDinside of State Science and technology industry's brand LED (LED online) to grasp the news recently, OSRAM shares what kind of contact (Siemens) to negotiate the acquisition of the shares of manufacturers have been many, in addition to three safety optoelectronics, including Jinsha River venture capital fund.

Purchase contract offer current news, is three to 70 yuan per share, the total amount of 7 billion euros in -80 billion euros acquisition of a wholly-owned OSRAM company. LEDinside believes that due to the acquisition of large amount of money, is not a listed company three optical ability, there will be Chinese government funding behind it is possible. However, OSRAM itself is a German listed company, so the future of the German government is willing to release will be the focus of observation.

LED and lighting technology related business, has been promoted to the level of national competition pattern

OSRAM currently has the most important core technology and brand lighting, lighting technology, business knowledge, and at the same time in the automotive LED market is also the main supplier of the global car factory. The company's 2015 revenues of up to 5 billion 574 million euros.

The company in July 2016 to its 80% stake in LEDVANCE lighting business at the price of 400 million euros to include IDG, Linsen, the two sides reached a Chinese consortium, including the LED chip purchase quantity on OSRAM favorable trading conditions.

Headquartered in Xiamen, is currently the largest Chinese Sanan optoelectronics, LED chip manufacturers, 2015 revenue reached 4 billion 858 million yuan, currently in the Chinese market value reached 48 billion 900 million yuan, the current account cash amounted to 6 billion 800 million yuan.

The past Sanan optoelectronics China constantly seeking acquisition targets, and even the past came one of the LED CREE is also an acquisition target companies. But considering the U.S. government for the past Chinese companies acquired repeatedly blocked the attitude of three turned to acquire European companies may be relatively easy to some.

From OSRAM's point of view, for the OSRAM management and employees, if a new owner, that is unacceptable, the impact of the work itself is not. But for OSRAM shareholders, three raised 70 euros purchase price, have a certain appeal, but OSRAM itself is still profitable companies, stock prices due to the acquisition of news incentives, currently OSRAM's market value has reached 6 billion 365 million euros. So in the future if you want to purchase three, is bound to pay a higher price for the shareholders of OSRAM, is also optimistic.

LEDinside pointed out that the current account three cash is not enough to pay the huge cost of the acquisition, so the deal, three also needs the support and guidance of the government China, produce a large enough capital investment team is likely to buy OSRAM, or China government offered financial assistance.

The German government, OSRAM is a German index of listed companies, the sale of stock and Sale of entire company group, in the national strategic significance is not the same, whether the agreement or approval to approve the deal is uncertain. The German government's external attitude, from the German Ministry of economic news, the current status is recognized, it is bound to be clear in the next period of time.

Why OSRAM to sell?

The rumors three intends to acquire OSRAM group OSRAM, curious about the outside world this money, why sell?

LEDinside said earlier in 2015, a large group of OSRAM shares what kind of strategy for OSRAM, direction of operation and management class is quite critical, when OSRAM announced the sale of its lighting business channel, and the right to use the brand, and in Malaysia has aggressively expanded LED chip production capacity, as well as to bet heavily updated LED technology research.

SIEMENS dissatisfaction do not agree, to have clearing in the hands of OSRAM holdings, and may be sold to Asian investors, so over the past year, SIEMENS has a considerable number of private equity funds and Chinese investors have started to negotiate.

The current shareholder structure of OSRAM, the company has a 17% stake in SIEMENS, but SIEMENS also has a Siemens Pension TrustEV company, owns 2.5% stake in SIEMENS system about 2 master pan OSRAM stake.

OSRAM corporate shareholders and other important Norges Bank Investment Management DeutscheAsset&Wealth Management, Investment GmbH, Credit SuisseAG and so on, including Deutsche Bank, Credit Suisse, well-known private equity fund Blackrock and other important financial companies, the next three to an acquisition of a wholly-owned OSRAM, the related shareholder attitude and benefit is very worthy of note.

At that time, the German investors, originally hoped that the focus on lighting global company, in the decision to get rid of its recession after the lamp business, to focus on the development of automotive and special lighting market. Then the script development so that OSRAM has split into LEDvance lighting business, also sold shares to the Chinese consortium, and since the OSRAM group's development trend is to continue to provide quality products to all LED manufacturers, and in the car with special lighting continued layout.

Such a good physique, must be attention and favor the industry heavyweights, so it came out this time three intends to acquire OSRAM news