Value of about 6 billion 500 million yuan! SIEMENS to sell shares held by OSRAM

According to Bloomberg News Agency (Bloomberg) 12 reported that informed sources, SIEMENS is considering its holdings worth about 866 million euros (about 6 billion 478 million yuan) of OSRAM (OSRAM Licht AG) shares sold to Jinsha River GO Scale Capital, including the potential Chinese buyers.

One of those who do not wish to be named, said the person familiar with the matter, the transaction on the OSRAM 17% shares may be announced as early as this month. Another insider said, Jinsha River (GO Scale Capital) may make the acquisition as a first step to further increase its OSRAM stake or a remaining stake to OSRAM takeover of OSRAM (83%), the remaining equity market value of about 5 billion 100 million euros. They also said that no decision has been made, GOScale may still not participate in the transaction.

GO Scale Chairman Wu Shen handsome Monday (12 days) said in an interview that the company intends to seek potential opportunities for cooperation with Munich based OSRAM of Germany, but declined to comment further. The two informed sources also said that these shares also attracted the interest of other Chinese bidders and Private Equity Firm.

SIEMENS and OSRAM declined to comment.

Relationship deterioration

With the last year, the relationship between the management of the two sides become stiff, SIEMENS then pulled out of OSRAM. SIEMENS CEO Joe Kaeser publicly questioned the other side (OSRAM) about the decision to invest heavily in Malaysia to build factories, the plan shocked OSRAM investors, OSRAM shares fell. Kaeser complained that OSRAM's chief executive officer, Olaf Berlien, destroyed shareholder value. In addition, SIEMENS at the February general meeting of shareholders attacked Berlien.

Frankfurt stock market on Monday (12 May) close, OSRAM's stock rose from 10.1% to 48.655 euros, the biggest gain for more than three years. However, Munich based SIEMENS fell 1% to $103.80.

SIEMENS tried to peel off the low profitability or growth prospects of the business is not optimistic, then in 2013 the lighting manufacturers out of the. After focusing on industrial applications such as high-speed trains, medical devices and products, the sale of the remaining shares of OSRAM will make SIEMENS's remaining consumer oriented assets to reduce another.

Since the split, OSRAM has cut more than 7 thousand and 800 jobs, and in July to 400 million euros will sell its services to ordinary lamps including MLS, Chinese consortium, to focus on the building, and the city's automotive lighting technology.

Third attempt

If successful, the bid will be the third time since 2015 that Jinsha River has issued a tender offer to European lighting. Earlier this year, PHILPS bid for the Royal PHILPS lighting components division Lumileds was blocked by the U.S. security team, Jinsha River has tried to bid for the Royal other lighting department. In the end, LumiLEDs is sold through an initial public offering.

Lighting business restructuring coincides with the replacement tide, more and more consumers choose more energy-efficient, more durable LED to replace the traditional light bulb. In the meantime, PHILPS lighting is facing competitive pressures from Asian manufacturers as well as falling prices. In July earnings, PHILPS lighting, said LED business sales rose 25% in the last quarter, accounting for more than half of the company's total revenue. (compile: LEDinside Nicole)

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