Osram's general lighting source business bid for white-hot Buddha Zhaohao Dehao announced the battle for the same day
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On the evening of August 25, Dehao Runda (002005.SZ) announced that it is planning a major asset and equity acquisition. The company plans to cooperate with the state-level industrial fund to jointly acquire the assets of a lighting enterprise outside the country. The estimated amount is about 40-60. Between RMB 100 million, it has entered the stage of substantive negotiation.
The above amount is in line with the previous institution's valuation of Osram's assets. It is reported that OSRAM has commissioned UBS to select a best buyer for it. Analysts said that Osram's general lighting source business value is up to 1 billion euros (equivalent to about 6.893 billion yuan), including debt.
According to sources, since April this year, OSRAM has held informal talks with a number of potential buyers, including Chinese counterparts. Major candidates may include Foshan Lighting, NVC Lighting (Dhao Run Runda), Sunshine Lighting, etc. Home listed company.
In addition, some private equity groups that have participated in this year's Philips lighting device business, such as CVC, KKR and Bain Capital, are also expected to be interested in OSRAM's general lighting source business.
On the same day that Dehao Runda issued the announcement, Foshan Lighting (000541.SZ) announced that the company is planning major mergers and acquisitions with Bain Capital (Hong Kong) Co., Ltd.
The largest shareholder of Foshan Lighting is Osram. According to the shareholders' shareholdings shown in the first quarter earnings report, Osram accounted for 13.52% of Foshan Lighting and Yuchang Lighting Equipment accounted for 10.54% of the shares.
There are signs that are constantly validating some of the previous speculations. The bidders are not only the two companies mentioned above.
In addition, Feile Audio (600651.SH), which has previously expressed its interest in the OSRAM general lighting source business and intends to issue a non-binding offer, and the previously announced announcement to acquire a well-known corporate subsidiary in the global energy efficiency management sector, Chau Ming Technology (300232.SZ) has also been speculated by many insiders as Osram.
Peter Reilly, an analyst at Wall Street's famous investment bank Jefferies, said that the biggest attraction for Asian buyers is the right to use the Osram brand and the Sylvania brand. He said: "For Asian manufacturers, instead of focusing on the European market, it is better to buy a brand with strong appeal. For Chinese manufacturers, this is a once-in-a-lifetime opportunity."
For the increasingly competitive Chinese market, brands, especially high-end brands, can bring good product market bargaining power to companies that are deeply involved in price wars. Of course, local governments may also be one of the supporters of overseas mergers and acquisitions.
At present, Philips sells its Lumileds for LED production and automotive lighting to the Chinese company Jinshajiang. Will Osram become another European and American lighting giant that sells general lighting source business to Chinese companies? Both Philips and Osram have implemented the sale of general lighting source business, so will General Lighting (GE) be the next one? 