Acquisitions of LED display listed companies in the first half of 2016

It is already halfway through 2016. During this half-year, LED listed companies have made frequent mergers and acquisitions to seize more market share. I believe it will continue to ferment in the second half of the year. With the rapid increase in LED demand, the LED industry will usher in a peak period of development. In the LED industry, mergers and acquisitions are considered to be one of the most convenient and quickest ways for companies to grab the "cake", and thus are favored by many LED companies. Today Xiaoye has summarized the mergers and acquisitions of listed companies in the first half of 2016, and let’s see how they laid out their plans.

Leyard plans to acquire 100% equity of Zhongtian Lighting for RMB 350 million

Leyard announced on the evening of June 29 that the company plans to acquire 100% equity of Zhongtian Lighting held by Jingyu Business and Runying Business for RMB 350 million in cash. During the aforementioned equity transfer process, the transferor used all 70% (corresponding to 245 million yuan) of the 350 million yuan equity transfer it received to purchase the company's shares held by the company's controlling shareholder and actual controller Li Jun through agreed block transactions.

Lehman Shares: Acquisition of Football Clubs

On June 14, Mr. Li Mantie, chairman of Lehman Shares, announced in Newcastle, Australia, that he had purchased 100% of the equity of Newcastle Jets, a powerful Australian Football League team, through his subsidiary Shenzhen Lehman Investment Co., Ltd., thus becoming the first Chinese to 100% own a football club in a foreign first-tier league. Ledman recently obtained two invention patents, namely "LED packaging structure and process" and "a power LED".

Lehman Shares acquires Xingsheng Investment for 186.9 million

Lehman Shares announced on the evening of April 11 that the company and Mr. Li Mantie and Ms. Zhang Qilin planned to sign a "Equity Transfer Agreement", according to the agreement: the company will acquire 100% equity of Shenzhen Mantie Xingsheng Investment Co., Ltd. (hereinafter referred to as "Xingsheng Investment") Xingsheng Investment held by Mr. Li Mantie and Ms. Zhang Qilin.

Lehman shares acquired China Television New Culture for 780 million

Lehman Shares disclosed a draft of issuing shares and paying cash to purchase assets on the evening of April 11. According to the plan, the company plans to purchase 100% of the equity of China Television New Culture Company held by China Television Media and HD Investment Company through a combination of issuing shares and paying cash, about 50% % of the consideration will be paid by issuing shares, and about 50% of the consideration will be paid in cash. It is planned to issue 18,670,212 shares and 2,074,468 shares to China Television Media and HD Investment Company respectively, accounting for 5.04% and 0.56% of the total shares of the listed company after the completion of this transaction.

Lianjian lays out digital media and purchases three more bids

On the evening of June 8, 2016, Lianjian Optoelectronics successively issued announcements that it planned to jointly increase capital in Koala Network and acquire part of its equity with related party Delta Investment for RMB 200 million. After this capital increase, the company holds 13% of the equity of Koala Network, and Delta Investment holds 13% of the equity in Koala Network. 20.33% equity of Xiong Network; Shenzhen Liandong Cultural Investment Co., Ltd. (hereinafter referred to as "Liandong Investment"), a wholly-owned subsidiary of Lianjian Optoelectronics, used its own funds not to exceed RMB 263 million to purchase 100% equity of Xi'an Green One, increase capital with RMB 200 million and acquire 100% equity of Shanghai Chengguang. The acquisition of three companies in one fell swoop is in line with Lianjian Optoelectronics’ merger and acquisition style at the end of last year.

Lianjian Optoelectronics’ wholly-owned subsidiary acquires part of the equity of Precision Focus Media

On January 27, Lianjian Optoelectronics announced that the eighth meeting of the company's fourth board of directors reviewed and approved the "Proposal on the Acquisition of 71.6% Equity Interest in Shenzhen Precision Focus Media Co., Ltd. by a wholly-owned subsidiary". (hereinafter referred to as "Linked Investment") used its own funds not exceeding RMB 193.32 million to acquire 71.6% of the equity of Shenzhen Precision Focus Media Co., Ltd. (hereinafter referred to as "Precision Focus Media" or "Target Company" or "Company") from Xinyu Jingwei Media Investment Partnership (General Partnership) (hereinafter referred to as "Jingwei Media"). After the acquisition is completed, Lianjian Optoelectronics and its wholly-owned subsidiary Liandong Investment hold a total of 100% equity in Precision Focus Media.

Dongshan Precision acquires 100% equity of MFLX

On February 22, 2016, Dongshan Precision announced that it would acquire the US listed company MFLX for approximately 4 billion yuan. On June 6, Dongshan Precision announced that it plans to raise funds through a non-public issuance of shares to acquire 100% of the equity of MFLX, a listed company that trades on the National Association of Securities Dealers Automated Quotation System. It has been filed or approved by the National Development and Reform Commission, the Ministry of Commerce, the Jiangsu Provincial Department of Commerce, the U.S. Securities Regulatory Commission, the U.S. Committee on Foreign Investment in the United States, and the U.S. Federal Trade Commission. In addition, it is also necessary to obtain registration or approval from relevant departments such as the MFLX shareholders’ meeting and the national foreign exchange administration authorities.

Absen plans to invest US$4.5 million to acquire shares in Artixium

On May 9, Absen announced the signing of an investment memorandum, stating that the company and Artixium Display Ltd. (hereinafter referred to as "Artixium") signed an "Investment Memorandum" regarding its proposed investment of US$4.5 million to acquire 51% of the equity of the target company held by Artixium's original shareholders. If the acquisition is ultimately successfully completed, Artixium will become a holding subsidiary of the company.

Data show that as of 2015, the global LED display market size was 62 billion yuan, and China's was 32 billion yuan. In the next three years, under the leadership of new technologies such as small-pitch LEDs and the downstream culture, media, sports and other industries to maintain high prosperity, We predict that the LED display industry can still maintain a stable growth of 20%-30% in the future.

In the development of my country's LED display industry in recent years, with the mergers and acquisitions and integration between enterprises, scale effects have continued to appear. In addition to mergers and acquisitions, LED display companies should also continue to innovate by improving research and development levels to enter new application places and open new blue ocean markets.