Top 10 Acquisitions Terminated in the LED Industry in 2015
Having survived oversupply in the LED industry, and endured a harsh winter, listed LED manufacturers have been leading the way in mergers and acquisitions in 2015. Listed companies mergers grew significantly this year to become a major trend on the market. Listed companies acquisitions and trade value have grown exponentially, reflecting features of listed companies mergering with smaller companies. More than 37 merger deals wre negotiated as of October 2015, and gave continued to grow.
Among the merger deals, some succeeded with flying colors, while others failed miserably. The LED industry which is favored by investors, deserves an in-depth review of the failed merger cases in the Chinese market this year.
Top 10 mergers and acquisitions terminated in the LED industry in 2015:
1) Kingsun Opto halts acquisition of Shenzhen United and Heading Technology Development (SUHTD)
Kingsun Opto announced on Feb.5, 2015 that it ternubated the acquisition of SUHTD, and the two companies signed an agreement to call off the deal. Under the original share purchase agreement, Kingsun was to acquire a 50% stake in Juichang Technology.
According to the statement release, Kingsun Opto signed an agreement to acquire 51% stake in SUHTD on Dec.9, 2014. Although, the two companies negotiated serval times, they were unable to reach an agreement on the acquisition terms, and the two companies decided to cancle teh deal.
2) Roshow Technology puts brakes on large investment restructure
Snapphire maker Roshow Technology stopped trading on the stock market starting from Dec.1, 2014 till June 29, 2015, due to an important business plan. Following the announcement, Roshow Technology and the company of interest were in talks, but the two companies failed to reach an agreement. After numerous negotiation attempts, the two companied decided to abort the investment and restructure deal. The compan has continued to halt share trade on the stock market.
3) Moso terminateds restructure plan
Chinese LED driver manufacturer Moso Power announced on May 20 this year that it was planning an important asset restructure, which involved issuing private placement, and that it would continue to halt trade on the stock market. The company and financial brokers had thoroughly analyzed and discussed the details, and after serval negotiations the parties arrived to the conclusion that restructure conditions were not ripe yet. After throughtful consideration, the company decided to terminate the investment restructure, and both parties singed an agreement to withdraw from the merge.
4) Unilumin puts US $300million oversea a acquisition deal on hold
In a statement released on July 14, 2015, Unilumin announced during the period of its halted trade on the bourse, the company had been carefully evaluating, observing and communicating with the company of interest. Since the company it intended to absorb was an international company, evaluations indicated the investment process would be relatively complicated. The two companies would need to overcome cultural differences after the merge, the administrative protocols involved were also burdensome. The administrative review process could take a long period, and plagued with many unforeseen risks, which could affect the effectiveness of the contracts.