Sanan in talks with Os­ram on po­ten­tial deal


Chi­nese light­ing maker Sanan Op­to­elec­tron­ics Co Ltd has an­nounced it has had talks with Germany’s Os­ram Licht AG about a po­ten­tial ac­qui­si­tion, al­though dis­cus­sions were in the very early stage and no de­tails were fi­nal­ized.

Sanan said it had an “ini­tial com­mu­ni­ca­tion” with Os­ram on a po­ten­tial ac­qui­si­tion or co­op­er­a­tion and met Os­ram once, ac­cord­ing to a state­ment re­leased to the Shang­hai Stock Ex­change on Mon­day.

The com­pany has not had any ne­go­ti­a­tions with Os­ram re­gard­ing the trans­ac­tion de­tails, in­clud­ing the price, and no bind­ing doc­u­ments have been signed, it said. There are “sig­nif­i­cant un­cer­tain­ties” on whether a deal would take place, the state­ment said.

Os­ram shares closed 1.6 per­cent lower at 56.81 eu­ros ($63.28) in Frank­furt, putting gains since the start of the year to 46 per­cent and giv­ing the com­pany a mar­ket value of 5.9 bil­lion eu­ros.

Sanan shares rose by 3.83 per­cent to close at 12.47 yuan ($1.85) on Tues­day.

Should the pur­chase be com­pleted, the Chi­nese com­pany would gain con­trol of a Ger­man high-end light­ing maker that makes prod­ucts such as the head­lights that go into the lat­est BMW 7-se­ries cars. A deal would build on the more than $190 bil­lion in for­eign ac­qui­si­tions that Chi­nese com­pa­nies have an­nounced this year, ac­cord­ing to es­ti­mates.

Sanan­makes prod­ucts that go into in­door and out­door light­ing, as well as traf­fic lights and aero­space light­ing. The group listed on the Shang­hai bourse in 2008.

Mu­nich-based Os­ram was spun off by Siemens AG three years ago. Siemens, which still owns 17 per­cent of Os­ram’s shares, is con­sid­er­ing of­fload­ing its re­main­ing stake to po­ten­tial buy­ers in­clud­ing Chi­nese in­vestor GSR GO Scale Cap­i­tal, sources with knowl­edge of the talks said last month.

Sanan is pre­par­ing to of­fer about 70 eu­ros a share, Ger­man busi­ness news mag­a­zine WirtschaftsWoche re­ported on Thursday, cit­ing sources.

Os­ram spokesman Philipp Grontzki de­clined to com­ment.

“For Sanan, Os­ram is a highly-at­trac­tive as­set that would add qual­ity and ac­cess to cus­tomers in Europe,” said Karsten Ilt­gen, an an­a­lyst at Bankhaus Lampe in Dus­sel­dorf, who has a “buy” rat­ing on Os­ram shares. “Even though the com­pany is smaller and less prof­itable than Os­ram, they­may well be able to fi­nance such a trans­ac­tion.”

Sanan’s first-half sales rose to 2.78 bil­lion yuan from 2.29 bil­lion yuan the pre­vi­ous year, the com­pany said. The com­pany is val­ued at 49 bil­lion yuan.

rise in share prices of Sanan Op­to­elec­tron­ics on Tues­day


An em­ployee checks halo­gen in­serts for en­ergy-ef­fi­cient light bulbs at an Os­ram fac­tory in Mol­sheim, France.

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