LED integrated M&A fermentation Dehao Runda retired to HK$1.65 billion in NVC

After the approval of the agreement of the acquisition of Wu Changjiang's equity by Dehao Runda, Dehao Runda will hold a 20.05% stake in NVC Lighting and become the largest shareholder of NVC Lighting; Safran Asia and Schneider Electric of Germany They are the second and third largest shareholders of NVC Lighting, holding 18.48% and 9.21% respectively; Wu Changjiang still holds 6.79% of NVC shares
China's LED lighting industry merger and integration wave quietly hit, or Wu Changjiang's counterattack after NVC lighting calmed down?

On December 26, Dehao Runda (002005.SZ), one of the largest LED chip production companies in China, announced that it will spend HK$1.65 billion to acquire approximately 20% of the largest lighting company in China, NVC Lighting (02222.HK). The largest shareholder of NVC Lighting.

The announcement also revealed that the founder Wu Changjiang transferred about 11.8% of the shares of NVC Lighting to DHL Runda, but he still holds 6.79% of the shares. On December 26, the “First Financial Daily” reporter called NVC Lighting Chairman and Safran Asia Partner, but as of press time, no response has been received.

At the same time, Dehao Runda intends to issue shares non-publicly, and is subscribed by the company's controlling shareholder and Wu Changjiang. Among them, Wu Changjiang subscribed 130 million shares. The industry estimates that Wu Changjiang will become the second largest shareholder of Dehao Runda after its shareholding.

The "marriage" between Dehao Runda and NVC Lighting can be said to be a group warming in the "cold winter" of the LED lighting industry. The two sides complement each other and can open up the entire industrial chain of LED lighting in the upper, middle and lower reaches.

HK$1.65 billion to buy the largest shareholder
From December 11 to December 21, 2012, Dehao Runda passed on-site and off-exchange transactions through its wholly-owned subsidiary, Dehao Runda International (Hong Kong) Co., Ltd. (hereinafter referred to as “Hong Kong Dehao Runda”). In the same way, it invested about 700 million Hong Kong dollars to acquire about 260 million ordinary shares of NVC Lighting, accounting for 8.24% of the total number of shares of NVC.

On December 26, Hong Kong DHL Runda signed a share transfer agreement with NVC Inc., a wholly-owned subsidiary of Wu Changjiang, to spend HK$950 million to acquire NVC Inc. at HK$2.55/share. NVC Lighting's common stock is approximately 373 million shares, accounting for 11.81% of the total number of NVC Lighting shares.

The above transaction has enabled Hong Kong Dehao Runda to spend a total of HK$1.65 billion (approximately RMB 1.34 billion) to hold a 20.05% stake in NVC Lighting and will become the largest shareholder of NVC Lighting.

Dehao Runda said that the acquisition of NVC Lighting's equity is to seek strategic cooperation with NVC Lighting, to take advantage of their respective advantages to enlarge and strengthen the LED lighting industry, not to obtain the securities investment behavior of the secondary market price difference.

Wu Changjiang currently holds 18.60% of the shares of NVC Lighting directly and indirectly. After the above equity transfer, Wu Changjiang still directly and indirectly holds 6.79% of the shares of NVC Lighting. Wu Changjiang and NVC Inc. are committed to granting priority to the transfer of these shares to DeHao Runda, which will be transferred to Dehao Runda at a price of HK$2.95 per share at any time deemed appropriate by DeHao Runda.

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