A piece of cross-border merger news on October 6 made the lighting industry, which was originally in a quiet holiday, suddenly become lively. Sanan Optoelectronics plans to acquire German lighting company Osram and plans to submit an acquisition offer before mid-October. The report pointed out that Sanan Optoelectronics may offer to pay approximately 70 euros per Osram share. If fully acquired, Osram's valuation would be around 7.2 billion euros.
As soon as this news came out, it attracted attention from all walks of life. The revenue of a listed company, Sanan Optoelectronics, failed to "swallow" the giant Osram. The industry speculated that there might be financial support from the Chinese government behind it. At the same time, Osram, as a German lighting giant, has mastered core lighting and optoelectronic technologies. This acquisition may be restricted by the German government. The German Economy Minister said that if the news is true, the German government will oppose the acquisition. Sanan Optoelectronics has not yet responded directly to the news. Whether this "marriage" will repeat the drama of "Jinshajiang Venture Capital's marriage to Philips Lumileds was terminated" at the beginning of the year remains to be disclosed.
With the slowdown of the European and American economies and the growth of China's capital power, Chinese-funded cross-border acquisitions in the LED industry have occurred frequently in the past two years, taking this opportunity to seize the core technologies and patents of foreign LED companies and lock the dominance of LED industry development in mainland China. The editor has sorted out these Chinese-funded cross-border acquisitions worth hundreds of millions (including terminated and planned acquisitions), and reviewed the changes in the market structure of the LED industry in the past two years.
777 million euros! Siemens plans to sell off its stake in Osram, and Jinshajiang is expected to take over
Siemens plans to sell off its 17% stake in Osram, worth 777 million euros. According to Bloomberg, potential buyers include Chinese consortium GO Scale Capital (an independent fund jointly launched by Jinshajiang Venture Capital and Oaktree Investment), and the stake has also attracted other bidders from China such as P-E Company.
According to reports, Siemens withdrew from Osram because CEO Joe Kaeser publicly questioned the other party’s decision to invest heavily in building a factory in Malaysia and complained that Osram CEO Olaf Berlien was destroying shareholder value.
On the morning of July 27, 2016, Mulinsen Company announced that global LED giant Osram had officially agreed on the 26th to sell LEDVANCE, its newly independently operated lighting business, and accepted a bid of more than 400 million euros (approximately US$439 million).
On November 6, 2015, Mulinsen announced that it would participate in the bidding for some of Osram’s lighting business assets. After 9 months, the results of the acquisition were finally released on July 26.
2.75 billion US dollars! Chinese company acquires Dutch NXP semiconductor business unit
On June 16, 2016, Reuters reported that Dutch chip manufacturer NXP Semiconductors had just reached an asset sale agreement with Beijing Jianguang Asset Management Co., Ltd. The chip company agreed to sell its Standard Products unit to Chinese state-owned investment company Jianguang Asset Management and private equity firm Wise Road Capital for $2.75 billion. Jianguang Assets is jointly established by China Construction Investment Capital, a large state-owned fund in Tianjin, and the China Science and Technology Finance Industry Alliance, and has the characteristics of Chinese state-owned capital.
Just over 6 months ago, NXP had just sold its RF Power division to Jianguang Assets for US$1.8 billion. That transaction also helped clear the way for NXP to acquire Freescale Semiconductor.
Standard Products has approximately 11,000 employees and is currently headed by Frans Scheper. It is reported that this business unit mainly produces discrete components, logic and power transistors (Power MOS), which are mainly used in automobiles, industry, computing and consumer electronics, wearable devices and other fields. Its revenue in 2015 was US$1.2 billion, accounting for approximately 20.8% of NXP's total annual revenue. After the acquisition is completed, the division will become a new company called Nexperia, headquartered in Nijmegen, the Netherlands.
$752 million! Is MOCVD giant Aistron going to be sold to Fujian Investment Fund? !
China's Fujian Grand Chip Investment Fund LP (FGC) and German semiconductor equipment manufacturer Aixtron (AIXGn.DE) said on May 23, 2016 that FGC would acquire Aixtron at a price of 6 euros per share. Including net cash, the valuation of Aixtron is approximately 670 million euros ($752 million).
Compared to the three-month volume-weighted average share price of Aixtron, this acquisition price represents a premium of approximately 51%. News of the deal pushed Aixtron's stock price up 20% in pre-market trading at brokerage Lang & Schwarz. FGC will provide approximately 1.7 billion yuan ($260 million) or approximately 231 million euros in equity financing, and the remaining funds for the acquisition will come from debt financing.
Germany AIXTRON Co., Ltd. is the world's leading provider of deposition equipment for the semiconductor industry. Its business covers compound semiconductors, silicon semiconductors, organic semiconductors, nanotechnology and other fields. Aixtron said that the company's headquarters will still be located in Herzogenrath, Germany, and will maintain three major technical centers at its German headquarters, Cambridge, UK, and Sunnyvale, California, USA.
1 billion yuan! Feile Audio used huge amounts of cash to acquire the world's established lighting giant
Feile Audio announced on December 11, 2015 that it planned to acquire Havells through a cash acquisition. It is worth mentioning that Havells is a world-leading lighting technology company with a history of more than 100 years. This merger and acquisition marks the company's accelerated expansion into the global lighting market.
Feile Audio's report shows that it plans to acquire 80% of the integrated shares of Havells Malta through its wholly-owned subsidiary Feile Investment, a special purpose vehicle British SPV established in the UK, for an estimated 138.4 million euros in cash. At the same time, Feile Investment also plans to acquire 80% of Exim's shares for an estimated 10.4 million euros in cash. The total purchase consideration is expected to be 148.8 million euros (equivalent to RMB 1.05 billion).
It is understood that the integration of Havells Malta will ultimately hold all the assets and businesses of the original Havells through a series of operations such as asset divestitures. Havells was founded in 1901 and is a world-leading lighting technology company with a history of more than 100 years. Havells' sales network is distributed in 48 countries around the world, with 500 sales and marketing personnel and more than 6,000 dealers. Exim, one of the other target companies in this transaction, is mainly responsible for providing procurement and working capital support for Havells. Exim's main business is to provide procurement services to Havells and sell to Havells subsidiaries at a markup of 1.6%.
2 billion yuan! Leyard plans to acquire PLANAR for nearly RMB 2 billion
Leyard announced on the evening of October 23, 2015 that it plans to issue no more than 120 million shares in a non-public offering and raise total funds of no more than 1.98 billion yuan, of which 1 billion yuan is planned to be used to acquire 100% of PLANAR's equity.
PLANAR is a full-category display product solution and high-end home theater supplier including DLP rear projection, spliced LCD and LED displays. It has a high reputation and market share in the international, especially North American market. Through the merger and acquisition of PLANAR, the company has on the one hand achieved full coverage of products under the mainstream display technology in the electronic professional display industry, and the product application areas will also extend from traditional industrial and commercial to high-end home theater and other civilian fields; on the other hand, it has quickly built a global operation platform. PLANAR's global marketing network and brand influence will greatly promote the realization of the company's global corporate strategic goals.
130 million US dollars! CEC jointly acquires 100% equity of Bridgelux
On July 21, 2015, BridgeLux announced that it had reached a final acquisition agreement with an investment group led by China Electronic Information Industry Group CEC and Chongqing Airport Investment Company. Following the acquisition, Bridgelux will continue to be an independent company reporting to the CEC through its U.S. subsidiary. In addition, Bridgelux will spin off its smart lighting business as a new independent company, Xenio. Bridgelux and Xenio will be led by Bridgelux's current management team. Xenio will focus on the design and manufacturing of LED modules to develop the $135 billion smart lighting opportunity in the Internet of Things (IoT) industry.
3.3 billion US dollars! Jinshajiang Venture Capital leads the acquisition of Philips Lumileds
On March 31, 2015, an M&A fund led by Jinshajiang GO Scale Capital (a fund jointly formed by Jinshajiang Venture Capital and Oaktree Investment Partners), with strong support from Chinese and foreign consortiums such as Asia Pacific Resources Development Investment Co., Ltd. and Nanchang Industrial Holding Group Co., Ltd., announced the successful acquisition of 80.1% of the shares of Lumileds, a subsidiary of Philips. Philips will retain the remaining 19.9% of the shares. Philips Lumileds currently includes LED and automotive lighting divisions. The transaction is valued at approximately US$3.3 billion.
This was originally a "good story" of a Chinese-funded cross-border merger, but the news on January 22, 2016 terminated this "marriage". Philips stated that out of consideration for US regulation, it had terminated its original plan to sell its lighting components and automotive lighting divisions to Chinese investors.
In October last year, Philips revealed that the Committee on Foreign Investment in the United States (CFIUS) had expressed concerns about certain unanticipated consequences of the proposed transaction between Royal Philips and Go Scale Capital, and therefore suspended the approval of the transaction. There is speculation that because some of Lumileds' LEDs are used in the national defense field, they involve national security issues.
Recently, the latest news revealed that Philips is negotiating with Apollo Global Management of the United States to sell its LUMILEDS business assets.
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