Chinese groups eye bids for German LED maker
Updated: 2016-10-11 11:30
Light bulbs of lamp manufacturer Osram are seen in a shop in Germering, near Munich, November 28, 2012. [Photo/Agencies]
Two Chinese companies are considering bids for Osram Licht, the Munich-based manufacturer of lighting products and semiconductors, in the latest sign of the nation's growing interest in buying European technology groups, a report showed.
Xiamen-based San'an Optoelectronics, which operates China's largest production facility for bright light-emitting diodes, and Go Scale, a Chinese private equity firm, have held talks with Osram in the past few weeks, said Financial Times, citing people familiar with the matters.
According to the report, Osram has retained bankers to advise it on the talks, but neither San'an Opto or Go Scale have tabled a firm bid.
Shares in Osram jumped 12.3 percent to 60.93 euros($68) after German business magazine Wirtschaftswoche reported that San'an Opto wanted to buy the semiconductor manufacturer and could be willing to pay 70 euros per share.
Osram, which has a market capitalisation of 6.4 billion euros, declined to comment. San'an could not be reached.
Osram was spun off by industrial conglomerate Siemens in mid-2013, and currently the latter is Osram's largest shareholder, with a 17 percent stake.
According to Financial Times, Osram has previously seen interest from Chinese buyers. In July, the company agreed to sell its lightbulb unit to a consortium led by Chinese LED specialist MLS for more than 400m euros.
According to an investment guide to Germany produced by Deloitte, Sino-German economic relations have evolved into a strong trade and investment partnership over the past 25 years. China has been Germany's second largest export market outside Europe since 2002, while Germany is China's largest European trading partner.
In recent years, Chinese investors have shifted their focus from acquisition of troubled assets to strategic investment in leading multinational technology companies.
China's home appliance manufacturer Midea offered to take a 95 percent holding in German robotics maker Kuka in August.