Osram in talks with potential buyers of lamps business -sources (updated)

NVC International Holdings

30/06/2015 17:19

(Adds potential buyers, analyst comment, background) 
    By Arno Schuetze 
    FRANKFURT, June 30 (Reuters) - German lighting group Osram 
 OSRn.DE  has begun talks with potential buyers of its lamps 
business as it prepares an auction that would allow it to focus 
on automotive lighting and components, people familiar with the 
matter said on Tuesday. 
    Osram confirmed that it had mandated UBS  UBSG.VX  to help 
it to choose a preferred buyer for a business that analysts have 
said could be worth up to 1 billion euros ($1.1 billion) 
including debt. 
    The lamps division is in the process of being carved out as 
a separate entity and the sources said an official sales process 
could start this year.  ID:nL5N0XQ2H5  
    They added that Osram had been in informal talks with 
potential buyers since April, including peers in China. 
    Chinese buyers, which operate in an ultra-competitive and 
crowded lighting market at home, are expected to be particularly 
interested in Osram's European and North American sales channels 
and brands. 
    Prime candidates could include listed groups such as Foshan 
Lighting  000541.SZ , Zhejiang Yankon Lighting  600261.SS  and 
NVC  2222.HK , though central government often advises which 
Chinese groups will bid for a strategic asset to keep different 
groups from driving up prices. 
    Jefferies analyst Peter Reilly said that a key attraction 
for an Asian buyer would be the rights to use the Osram brand 
and Sylvania in North America.  
    "For an Asian player, not getting a heavy European cost base 
but getting a strong brand would be very appealing," he said. "I 
would imagine if you're any one of those Chinese companies this 
is a once-in-a-generation opportunity." 
    Separately, several of the private equity groups that 
participated in an auction for Philips'  PHG.AS  lighting 
components business this year, such as CVC, KKR and Bain 
Capital, are expected to express interest in Osram's lamps 
operation.  
    The Philips auction was won by Chinese technology fund Go 
Scale Capital with a $3.3 billion deal. 
    The buyout groups along with Zhejiang Yankon Lighting and 
NVC declined to comment. A Foshan representative was not 
immediately available for comment. 
($1 = 0.8954 euros) 
 
 (Additional reporting by Georgina Prodhan and Deena Yao; 
Editing by Ludwig Burger and David Goodman) 
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters 
Messaging: arno.schuetze.reuters.com@reuters.net)) 
 
Keywords: OSRAM LICHT LAMPS/