Wu Shenjun interpretation of the acquisition of the whole process of Lumileds

By March 31st, Jinsha River GOScaleCapital (joint venture with Jinsha River oak Investment Partners Fund), led by the Asia Pacific Resources Development Investment Limited (hereinafter referred to as the "Asia Pacific Resources") and the Nanchang Industrial Holdings Limited (hereinafter referred to as "Nanchang Industrial Holdings") and other financial backing buyout fund, announced the successful acquisition of LED lighting business Holland Royal PHILPS the company's (Lumileds) 80.1% of the shares, PHILPS will retain the remaining 19.9% of the shares. Recently, the Jinsha River venture capital fund (hereinafter referred to as Jinsha River venture) co-founder and managing director Wu Shenjun held a conference call with the media, interpretation of the acquisition process, the following is the record of the conference.

Reporter asked: negotiations lasted more than 6 months, because the details or other issues? Where is the focus? Please talk about the details of the negotiations.

Wu Zong: bid competition is very intense, but the focus is not on the price of the competition, because the price is not much difference in the bidding process, 3 billion 200 million, 3 billion 300 million have, this can be estimated. PHILPS is an international company, we have clear procedures, after several rounds of bidding, every round of elimination. At the end of December last year, we finally bid only domestic bidders are facing foreign predators. But we can give PHILPS other companies can not bring the resources, that is, our capacity, capacity and the ability to integrate the industry focused on the development of a strong desire, which is the Chinese team to bring. "

Reporter asked: why Jinsha River venture capital has always focused on the LED industry investment and subsequent arrangements after the acquisition?

Wu Zong: "we have been concerned about the development of new industries, including the development of LED, and electric vehicles, batteries, and PHILPS lighting business for us is stripping goodly, will continue to focus on new industries, new and original technology in the future, the introduction of technology and mode of industrialization...... PHILPS has the world leading technology in the LED chip, LED mobile phone flash and car lighting, automotive lighting like more than and 80 production lines, the production capacity, we can through the international division of labor, in Chinese localization improve efficiency and productivity, the machine will help the company to enter the international market. "

Reporter asked: PHILPS last year to separate the lighting business, is not to prepare for sale? Why PHILPS to sell LED lighting?

Wu Zong: "for PHILPS, the reason for multiple considerations, one of the main reasons is to concentrate on doing their own medical industry, the industry needs to continue to invest, including production, R & D investment, equipment investment, is to consider their strategy; it is a rare opportunity to achieve advanced production technology, achieved very good customer base through rapid method to continuous development at home and abroad. The best example of this is Taiwan's TSMC, which has grown from a small company to PHILPS, a giant enterprise. "

PHILPS chose us, mainly to see the resources brought about by the Jinsha River lead, the integration of domestic resources and the industry's continued concern. Wu also said that with the crystal energy is not a competitive relationship, the relationship of cooperation and development, through a reasonable division of labor, cooperation in R & D, and promote the development of the domestic lighting industry, to the international market.

Reporter asked: can you introduce the operation of PHILPS?

Wu Zong: "from the past two years and the 2014 annual report, PHILPS's operating very well, sales of lighting, LED chips in different sectors, with respect to the financial situation of the domestic and international standards are among the best, the gross profit margin is very high, the key is to continue to invest in research and development, production, so in the next few years, the profit is expected to very good. "

Reporter's question: after the acquisition of PHILPS Jinsha River lighting business, the future development strategy will be adjusted? The future is still the daily operation of PHILPS, or Jinsha River will be involved in the daily operation of the team?

Wu Zong: "no change, no Jinsha River, Nanchang Asia Pacific Resources Industrial Holding Group support, can not be successful acquisition, we just played a role, take the lead in the lead, we will focus on investment in emerging industries. This team includes a lot of excellent scientists, Chinese scientists, we have the confidence and ability to do this project, because we have accumulated over more than and 10 years of international leading technical personnel. As for going forward, in accordance with international rules, in accordance with the market-oriented approach, through incentives to allow the technical team to continue to play, we played the role of cheerleading, resource integration. I hope this team can attract more excellent scientists. "

In addition, it is worth mentioning that, after the acquisition of Lumileds consortium in China, in April 2nd also has its own Chinese Name: bright sharp Trading (Shanghai) Co., ltd..

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