“Awards Banquet”: “The Ten Best” M&A Cases in the First Half of the Year

“M&A or death” is not an alarmist statement for today’s LED industry. Since 2013, the LED industry has launched a wave of mergers and acquisitions, and many companies have sought capital support to avoid being eliminated in this "big fish eats small fish" game. In 2014, more than 30 mergers and acquisitions in the LED industry jointly created a "merger and acquisition feast".

In 2015, the game is not over, the plot continues to unfold, and the popularity of mergers and acquisitions continues unabated. The top ten most influential mergers and acquisitions in the first half of the year are hereby selected and "awarded".

Most sensational award: GSR Ventures acquires Lumileds

Brief description of the event: On March 31, Philips released a "blockbuster", announcing that the M&A fund led by GSR GO Scale Capital would acquire a total of 80.1% of the shares of Lumileds owned by Philips at a transaction value of approximately US$3.3 billion, and Philips would retain the remaining 19.9% ​​of the shares.

Reason for the award: "Split-up" by the international giant Philips is nothing new, but the sale of 80% of its shares in Lumileds, which is mainly engaged in LED devices and automotive lighting business, really "surprised" the industry. In addition, the acquirer is still a mainland consortium, and the sensational effect is doubled. As soon as the news came out, various analyzes were overwhelming. Some said that mainland manufacturers would have the opportunity to obtain patent authorization or enter the Lumileds-related supply chain, and some comprehensively analyzed why Jinshajiang Venture Capital is interested in Lumileds... In short, this matter has occupied the headlines of major industry media for several days and is still a "standing topic" in the industry. It is well deserved to win the "Most Sensational Award".

The Most "Kinglike" Award: Epistar's Acquisition of TSMC Solid-State Lighting

Brief description of the event: On January 9, Epistar announced that it would purchase all of its shares in TSMC Solid-State Lighting from TSMC and its subsidiary TSMC Solar at a price of NT$825 million (equivalent to approximately RMB 160 million). After the transaction is completed, Epistar will hold 94% of the equity of TSMC Solid-State Lighting. TSMC stated that after the transaction, Semiconductor Manufacturing Company will completely withdraw from TSMC Solid State Lighting, and operations will be led by the existing teams of Jingdong and TSMC Solid State Lighting.

Reasons for the award: Epistar’s “unexpected” acquisition of Canyuan last year caused a stir in the industry. Today, "LED M&A King" Jingdian has extended its tentacles to the downstream lighting field. Along the way, Epistar's growth history is a history of mergers and acquisitions. The once-powerful LED manufacturers in Taiwan, Guolian, Yuanshi, Luenquan, and Lianyong, have all been "eclipsed" by Epistar. Their ability to expand through mergers and acquisitions is unparalleled.

Best "Top Husband" Award: Jingsheng Mechanical and Electrical acquired 51% of Hangzhou Zhongwei's shares

Brief description of the event: On April 9, Jingsheng Mechanical and Electrical announced that the company planned to change the over-raised project "Construction Project of Silicon Monocrystal Furnace with an Annual Output of 25 Taiwan Areas" and use 138 million yuan of it for After acquiring 51% of the shares of Hangzhou Zhongwei Optoelectronics Technology Co., Ltd., the counterparty promised that the after-tax net profits belonging to the owners of Zhongwei Optoelectronics after deducting non-recurring gains and losses in 2015, 2016 and 2017 will be no less than 5 million yuan, 20 million yuan and 30 million yuan respectively.

Reason for the award: In recent years, LED equipment manufacturers have had a tough time, and there are many who want to "take advantage of others." How to successfully "hug the thigh"? Find the right moment! Jingsheng Electromechanical originally focused on photovoltaic and semiconductor crystal growth and processing equipment. However, it has since changed its strategy and will actively deploy sapphire crystal material growth, LED substrate processing, and intelligent equipment and services based on Industry 4.0 based on its main business. Zhongwei Optoelectronics' business covers many subdivisions such as machine vision equipment, precision instrumentation, LED lamp automatic production lines, and smart production equipment in the LED industry. It comprehensively covers the upstream, midstream, and downstream industrial chains of the LED industry, making it a suitable target for Jingsheng Electromechanical. In addition, the two companies are "fellow townspeople" (both Zhejiang companies), so the matter of "holding each other's shares" is determined.

The most “not doing business” award: Roxiao Technology’s acquisition of Sanmu Communications

Brief description of the event: On April 28, the restructuring plan released by Roxiao Technology showed that it planned to acquire 100% of the equity of Sanmu Communications in the form of “shares + cash”, with a transaction price of 1.15 billion yuan. At the same time, the company plans to raise additional supporting funds of no more than 320 million yuan. All shareholders of Sanmu Communications promise that the net profits of Sanmu Communications after deducting non-recurring gains and losses in 2015, 2016 and 2017 will not be less than 100 million yuan, 115 million yuan and 132 million yuan respectively.

Reason for the award: What does Miki Communications do? An enterprise that provides solution design and complete machine production services for tablet computers and smartphones, as well as the R&D and production of Internet of Things communication products based on mobile communication technology. In other words, Miki Communication’s business has nothing to do with Roxiao Technology’s main sapphire business. Is Roxiao Technology’s move an all-out effort to cross borders or is it “not doing its job properly”?