Osram sells lamps business in China
On 21st July 2015 we reported on electro-insider on the interest of Chinese investors in parts of Osram lighting group. Now it is official:
Osram is selling its 13.5% stake in the Chinese company Foshan Electrical and Lighting Co. (Felco) for more than EUR 350 m to a subsidiary of Guangdong Rising Assets Management Co. Ltd. The price lies around 30% above Felco’s current share price.
Osram expects a pre-tax profit of EUR 300 m from this transaction, which is to be posted in the 2016 business year.
The net proceeds are to be employed for further out-financing its worldwide fully funded pension commitments.
The transaction is subject to the consent of the relevant Chinese regulation authorities, and is expected to be concluded in December.
Felco manufactures and sells illuminents in particular and is quoted on the Schenzhen, China, stock exchange. Guangdong Rising Assets Management Co., Ltd. generated a turnover equivalent to more than EUR 6 bn in 2014 and presented a balance sheet total of over EUR 15 bn.
Osram wants to completely part with the conventional lamps business and concentrate on special lighting and LED semi-conductors in future.