OSRAM negotiates with potential buyers to split the lighting business
August 09 03:02:33, 2019
In April, OSRAM plans to spin off or sell its lower-profit general lighting business and set up an independent company, which will help OSRAM to focus more on automotive lighting and LED components. On June 30, according to Reuters, it was reported on Tuesday that the German lighting Osram Group has started negotiations with potential buyers of the lamps business. Osram confirmed that it has commissioned UBS to help it choose a preferred buyer, and there is news that the formal sales process may start this year. They added that since April, OSRAM has been in informal talks with potential buyers, including Chinese buyers. Chinese buyers, the lighting market they are in are very crowded and over-competitive, and are expected to be particularly interested in OSRAM's European and North American sales channels and brands. The main possible targets for inclusion in the list include Foshan Lighting, Zhejiang Sunshine Lighting and NVC Group. Reuters had contacted these potential buyers, Zhejiang Sunshine Lighting and NVC refused to comment, and Foshan’s representative did not immediately comment on the matter. Peter Reilly, an analyst at Jefferies, said that for Asian buyers, the main attraction is the right to use the OSRAM brand and the Xiwannian brand in North America. He said: For Asian buyers, the cost-based cost is not heavy, but getting a strong brand advantage will be very attractive. I can imagine that if you are any of these Chinese companies, this is a A generation has only one chance. In addition, some private equity firms such as CVC, KKR and Bain Capital, which have participated in the Philips Lighting Business Auction this year, are also expected to express interest in the sale of OSRAM. Philips' 85% stake in Lumileds, a LED and automotive lighting business, was acquired by Goscale Capital, a joint venture between Jinshajiang Venture Capital and Oaks Investment, for $3.3 billion.