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Sector
Industrials
Size
Large Cap
Market Cap £5.69bn
Enterprise Value £6.69bn
Revenue £3.41bn
Position in Universe 907th / 6417

Chinese firms prepare bids for GE lighting ops - sources

Mon 5th March, 2018 1:04pm
By Arno Schuetze and Kane Wu
    HONG KONG/FRANKFURT, March 5 (Reuters) - At least two
Chinese companies are preparing bids for industrial conglomerate
General Electric's  GE.N  remaining lighting assets in a
potentially $1 billion deal, according to people familiar with
the situation.
    MLS Co  002745.SZ  and Foshan Electrical and Lighting Co
 000541.SZ , both lighting manufacturers based in southern
China's Guangdong province, have been in talks with lenders to
finance a potential bid for the asset, one of the people said.
    GE on Monday sent out teasers to interested parties about
the sale process, to be followed by information memos in a
couple of weeks and a first round of bidding thereafter, another
source said.
    GE declined to comment. MLS could not be reached for
comment, while Foshan did not immediately reply to a request for
comment. The people could not be named as the information is
confidential.
    In mid-February, GE reached a deal to sell the European
parts of its overseas lighting business to a company controlled
by former executive Joerg Bauer for an undisclosed amount. That
marked the first step in the divesture of the lighting
business. urn:newsml:reuters.com:*:nFWN1Q51IR
    Shedding the remaining, mainly U.S.-based lighting business
is part of a broad restructuring plan aimed at divesting $20
billion worth of assets to focus the remaining company on three
core divisions: power, aviation and health care.
    Among other options, GE is exploring a sale of its
industrial gas engine business that could be worth as much as $2
billion, people close to the matter said last month.
 urn:newsml:reuters.com:*:nL2N1Q6212
    Profit at GE's lighting business fell sharply last year. It
earned $93 million on revenue of nearly $2 billion in 2017, down
from $199 million on $4.8 billion in 2016.
    The U.S. lighting activities will also be shopped to peers
such as Cree  CREE.O , Acuity  AYI.N , Leviton, Hubbell  HUBB.N 
and Eaton  ETN.N , one of the people said. 
    GE said last month they would be marketed as part of a
separate sale or sales.

 (Editing by Mark Potter)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))
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