09.10.15
Osram has agreed to sell its 13.5% stake in the Chinese company Foshan Electrical and Lighting Co., Ltd. (Felco) to a subsidiary of Guangdong Rising Assets Management Co., Ltd. With this move, Osram will dispose of a non-strategic investment.
The agreed selling price is more than €350 million, which corresponds to a premium of more than 30% over the current share price. Osram expects to have a pre-tax gain of approximately €300 million from the transaction, which is expected to be booked in fiscal 2016. Osram will use the net disposal proceeds for the further worldwide funding of its funded pension commitments.
The transaction is subject to approval by the relevant Chinese regulatory authority and is expected to close by the end of December 2015. Felco, which primarily manufactures and distributes lamps, is listed on the Shenzhen Stock Exchange in China. Guangdong Rising Assets Management Co., Ltd. reported revenue equivalent to more than €6 billion and total assets in excess of €15 billion in 2014.
The agreed selling price is more than €350 million, which corresponds to a premium of more than 30% over the current share price. Osram expects to have a pre-tax gain of approximately €300 million from the transaction, which is expected to be booked in fiscal 2016. Osram will use the net disposal proceeds for the further worldwide funding of its funded pension commitments.
The transaction is subject to approval by the relevant Chinese regulatory authority and is expected to close by the end of December 2015. Felco, which primarily manufactures and distributes lamps, is listed on the Shenzhen Stock Exchange in China. Guangdong Rising Assets Management Co., Ltd. reported revenue equivalent to more than €6 billion and total assets in excess of €15 billion in 2014.
