Osram Completes Sale of Ledvance
The sale of Ledvance to a Chinese consortium was successfully completed, effective today. This follows the parties obtaining all necessary approvals from the relevant authorities. The final selling price is around €500 million. As announced, Osram additionally expects license income of as much as €100 million over the coming years for the use of trademark rights. The decision by Osram’s managing board to sell Ledvance followed an intensive review of strategic options for the general lighting lamps business. “The successful closing of the transaction is a milestone for Osram in its strategic realignment. As a hightech company, we will be able to participate in attractive future growth markets even stronger in the future,” said Olaf Berlien, Chief Executive Officer of OSRAM Licht AG.
Osram’s supervisory board approved the sale on July 26, 2016. The buyer of Ledvance is a Chinese consortium consisting of the strategic investor IDG Capital (IDG), the Chinese lighting company MLS Co., Ltd. (MLS) and the financial investor Yiwu State-Owned Assets Operation Center (Yiwu). With the sale, Osram has taken an important step in the implementation of its three-pillar strategy towards focusing on Specialty Lighting (SP), Lighting Solutions & Systems (LSS) and Opto Semiconductors (OS). In connection with the transaction, Osram and MLS have also signed a letter of intent under which MLS may purchase LED chips from the new Osram plant in Kulim, Malaysia.