Osram’s transformation is making further progress: the company has agreed to sell its 13.5% stake in the Chinese company Foshan Electrical and Lighting (Felco) to a subsidiary of Guangdong Rising Assets Management With this move, Osram will dispose of a non-strategic investment. The agreed selling price is more than EUR 350 million (US $392.51 million), which corresponds to a premium of more than 30% over the current share price. Osram expects to have a pre-tax gain of around EUR 300 million from the transaction, which is expected to be booked in fiscal 2016.
Osram will use the net disposal proceeds for the further worldwide funding of its funded pension commitments. “A funding status of almost 100% means that Osram occupies one of the top spots in Germany. It will result in a more powerful and more robust setup of the company” said Olaf Berlien, Chief Executive Officer of OSRAM Licht.
With the sale of its Felco stake, Osram is making another step within its transformation. The transaction is subject to approval by the relevant Chinese regulatory authority and is expected to close by the end of December 2015. Felco, which primarily manufactures and distributes lamps, is listed on the Shenzhen Stock Exchange in China. Guangdong Rising Assets Management reported revenue equivalent to more than EUR 6 billion and total assets in excess of EUR 15 billion in 2014.
