philips, osram lighting bidders to line up this month: sources - programmable led display

FRANKFURT (Reuters)-
Industry insiders said Friday that companies interested in lighting assets will be able to bid for European top brands Philips and Osram in two separate auctions starting this month.
These divestitures will enable Philips and Osram to focus on their core business and draw a line under what they see as low growth potential and lower profit margins.
Potential strategic buyers, mainly from China, want brands and distribution networks to help sell their own products globally, while private equity firms may restructure these businesses and sell them later.
Philips, the Dutch technology group, has put its lighting equipment
The world's largest manufacturer of electric lightson the block.
While Philips has not yet decided whether to list on the stock exchange or sell the lighting business directly, it has requested a tentative bid for the company, which may be valued at approximately 4-
6 billion euros ($4. 36-6. 53 bln)
According to people familiar with the matter, as of the end of January.
Private equity groups may value the business at 7-
Sources said it was eight times its expected core earnings.
The past four quarters have ended.
2015, Philips Lighting announced sales of about 7.
Income before interest, tax and amortization is 2 billion euros (EBITA)
Around 0. 63 billion euros, the cost of impairment and restructuring valued at more than 0. 2 billion euros was stripped.
A consortium of acquisition groups KKR, CVC and Onex is expected to offer offers to the business as well as to Bain, Apollo, Blackstone and Chinese bidders, they said. S. -
Based on the vision may be interested in parts of the device.
Philips Lighting has recently partnered with Apple and Cisco to try to bring high returns
Profit programmable LED lighting for home and office.
In addition, Philips agreed last year to sell its smaller Lumileds to Chinese investors in the third quarter.
But after the US election in October, doubts were raised about the deal. S.
Opposition from government agencies.
A person familiar with the matter said Philips may have found a way to make the deal.
A spokesman for Philips said discussions with the United StatesS.
The authorities are in progress and the end of the transaction is uncertain, refusing to comment further on both sales.
"As a runner --
Ups in sales of Lumileds (KKR, CVC, Bain)
"It was not until the end of 2015 that they were told to be ready to re-bid, and the message they are now receiving is that there is a good chance that adjustments to the Lumileds transaction will pass," the person said . ".
In addition, Osram, a German peer, has requested a preliminary bid for its traditional lighting business, with sales of 2 billion euros and EBITA of about 100 million euros next week.
The bidder may bid about 0. 5 billion euros to value the business, the source said.
While traditional bulb business is expected to decline with more energy-efficient technologies such as lighting
LEDs (LEDs)
Osram has attracted interest from Chinese buyers who are interested in brands and distribution channels in Europe and the United States.
According to people familiar with the matter, Chinese LED product manufacturer MLS is expected to make a quotation, as well as a consortium composed of China Foshan Group and Bain acquisition group.
Shanghai Feile Audio said in July that,
A binding offer no longer pursues assets, the source added.
"The sales process is going on," a spokesman for Osram said . ".
Potential bidders for Philips and Osram's lighting business declined to comment and did not immediately comment.