Osram's two major splitting businesses, Mu Linsen and Feile Audio

In the early morning of November 30, on Monday, Osram (China) Lighting Co., Ltd. (hereinafter referred to as “Foshan Osram”), No. 1 Industrial North Road, Foshan City, was in front of the crowd. Earlier, the Propaganda Department of Chancheng District of Foshan responded to the media that, starting on November 5, hundreds of employees of Osram Foshan Company stopped working due to concerns about diversion and compensation.

Multinational LED giant Osram is preparing to carry out the heaviest “slimming” program in China, splitting its two major business CLBs (traditional lighting and ballasts) and LLS (LED lights and systems), which are estimated to be around 720 million euros. (equivalent to RMB 4.92 billion).

At present, two listed companies have a strong interest in these two businesses. Feile Audio in Shanghai and Mulinsen in Guangdong announced that they want to make acquisitions.

"According to the assets sold by them (Osram), to make up for our shortcomings." In the interview with the author, the Mulinsen Securities Affairs representative bluntly stated that the impact of the acquisition of Osram assets on the company's main business.

After the spin-off, OSRAM will have more funds to apply to R&D and business integration in the high-end lighting field. “This OSRAM launches high-end lighting, which will be a model for transformation in the industry.” According to industry insiders.

Traditional business shrinks

According to public information, OSRAM, one of the world's three major lighting companies, consists of five major components: CLB (traditional lighting and ballast), LLS (LED lights and systems), L&S (lamps and solutions), SL ( Special lighting, mainly for automotive lights) and OS (optoelectronic semiconductors, mainly LED chips and devices), with world-renowned brands OSRAM (Osram) and Sylvania (Xi Wannian), and a huge sales channel covering about 150 countries .

A retired employee who worked in Foshan Osram for more than a decade told the author that Foshan Osram is Osram's largest factory in the world. This multinational giant has always attached importance to the factory's every move.

According to industry and commerce information, Foshan Osram was established on January 23, 1995. In the past 20 years, its registered capital has reached 39.88 million euros. The shareholders are Hong Kong Youchang Lighting Equipment Co., Ltd. and Germany Osram.

As early as last year, with the shrinking of the traditional LED lighting market, Osram's traditional lighting business has shown a significant downward trend. "The main reason is that the domestic LED business is developing rapidly and there are more companies involved." The former employees said.

According to public information, in April 2015, OSRAM announced its plan to spin off its channel business and expected to complete the spin-off of the business within 12 months. In June 2015, the OSRAM Supervisory Board approved the spin-off plan.

On September 9 this year, Foshan Lighting announced that OSRAM GmbH, the controlling shareholder of Osram Holdings Co., Ltd., the company's largest shareholder, signed a share sale and purchase agreement with Guangdong Electronic Information Industry Group Co., Ltd., and will 100% of Osram Holdings Limited. Transfer to the latter.

At this point, the marriage relationship between Osram and Foshan Lighting has come to an end in the past 10 years. However, at the executive level, OSRAM did not “exit”, Osram Asia Pacific President Wu Shengbo and Asia Pacific Finance Director Vienne Hoffman still served as Foshan Lighting Director.

In contrast, middle and lower-level employees are more mobile. The internal staff of Foshan Osram told the author that after Osram announced the spin-off of the channel business, there were employees leaving the company, including department managers and directors, who had been working in the company for a long time.

As a multinational lighting giant, Osram's business spin-off will lead to employee turnover when the traditional business sales are not ideal.

Spin-off business into "fragrant"

As of now, OSRAM has not announced the details of its spin-off business. On November 30th, the author contacted Osram. In order to understand the status of its spin-off business and the future strategic layout, a woman named Ms. Lin, after receiving a phone call from the company, said that she would find someone to dock as soon as possible, but as of the time of the press release, Respond.

However, Ms. Lin told the author, “The spin-off business has not yet been completed. In the process, there are many speculations (outside), but we have no way to guess.”

According to media reports, OSRAM's split mainly consists of two parts, CLB and LLS. These two businesses accounted for 47% of Osram's 2014 revenue.

It is reported that CLB and LLS are two parts of the business. It is estimated that the total value of the two major businesses is about 720 million euros (equivalent to about 4.92 billion yuan).

At the time of Osram's strategic contraction, the two businesses that were divested have become the “sweet” that Chinese companies are vying for, and many listed companies have a strong interest in this.

As early as July 21 this year, Feile Audio announced that it intends to issue a non-binding letter to OSRAM Licht AG to acquire its channel business, hoping to acquire the channel business of Germany Osram's planned spin-off."

"Osram's channel business split is mainly related to the division of lighting products, brand licensing schemes, restructuring plans of global factories, etc. Currently, OSRAM has not announced the specific spin-off plan." Feile Audio said.

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