Further details of Ledman’s acquisition of a Chinese LED luminaire company has finally been confirmed today.
After suspending trade on the market for three months, Ledman Opto finally revealed the company’s business restructure plan, reported EETimes China.
The company announced it would be acquiring LED manufacturer Toshare’s 100% shares for RMB 230 million (US$) , in which 70% of the share transaction would be through company shares, while the remaining 30% through cash.
Major Toshare shareholders are Zhipeng Ke, Maoliang Hong, and Puxiong Sun.
As of April 2015, Toshare’s net asset was a mere RMB 18.53 million indicating the acquisition Ledman’s is acquiring the company at 11 times its premium price. The market has been relatively pessimistic about the merge’s outlook.
The evaluation was based on Toshare’s main business is LEDs. The Chinese government has strongly supported the LED industry, and generated very good business opportunities. Secondly, the targeted acquisition company is still in a high growth phase, which has been reflected inthe company’s acquisition value.
Toshare is a LED R&D, production and sales company with advanced technology. The company’s major products include LED tube lights, panel lights, floodlights, and downlights. Most of its products are applied n indoor commercial lighting applications. Up to 80% of its products are exported, while the remaining 20% is for the domestic market. Toshare’s primary export market is Europe and Americas, and with the LED lighting industry entering a growth phase the company has been able to maintain high growth rates every year.
