Electronic sensor group First Sensor prepares for potential sale -sources (updated)

First Sensor AG

31/10/2018 16:22

* DPE received interest for First Sensor - sources
    * DPE expected to hire financial adviser shortly - sources
    * Any buyer of stake would have to make full takeover offer

 (Adds details on possible buyers, industry context)
    By Arno Schuetze and Liana B. Baker
    FRANKFURT, Oct 31 (Reuters) - First Sensor  SISG.DE , which
makes electronic sensors used in industrial, medical and
driverless cars, is being prepared for a potential sale by its
main owner Deutsche Private Equity (DPE), people close to the
matter said. 
    DPE is considering options for First Sensor after receiving
interest in the company, in which it first invested in 2011, the
sources said. The sources also said that DPE was expected to
hire a financial adviser for the deal shortly.
    First Sensor's shares surged on the prospect of a possible
sale and were up about 17 percent at one stage on Wednesday.
    Any buyer of DPE's 36 percent stake would have to make a
takeover offer for the whole company, whose market
capitalisation stood at 150 million euros ($169.83 million) on
Wednesday.
    First Sensor and DPE declined to comment.
    Several Chinese companies have signalled they would be keen
to buy First Sensor, the people said.
    But they also said the company's activities in the defence
sector as well as its U.S. business would be likely attract
interest from German and U.S. regulators and possibly scupper a
such deal.
    DPE is expected to sound out First Sensor's rivals such as
TE Connectivity  TEL.N  and Molex Electronic Technologies as
potential buyers, they said. 
    First Sensor has a number of rivals in the new market for
light detection and ranging (LiDAR) sensors, which have
potential to be the "eyes" of driverless cars. It also makes
cameras for current generation advanced automotive collision
detection systems.
    Other LiDAR players include auto parts suppliers Continental
AG  CONG.DE , Delphi Automotive, ZF Friedrichshafen AG,
chipmakers Infineon Technologies AG  IFXGn.DE  and Texas
Instruments  TXN.O  and specialist sensor makers Velodyne and
Quanergy, among others. Some of these companies are First Sensor
customers.
    The company reiterated earlier this month that it expects to
generate revenue of between 150 and 160 million euros this year,
and an EBIT margin of 7 to 9 percent.  urn:newsml:reuters.com:*:nASP0001M5
    Half of its sales come from Germany, Austria and
Switzerland, with 80 percent from Europe, 10 percent from North
America and 10 percent in Asia, according to company filings.
    ($1 = 0.8832 euros)

 (Additional reporting by Kane Wu and Eric Auchard; Editing by
Maria Sheahan and Jane Merriman)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))