Siemens May Postpone Listing of OSRAM or Opt for Spinoff
The Seimens plan for the multi-billion euro initial public offering of its lighting unit OSRAM may be postoponed, as its potential market valuation has fallen over recent months, Reuters reported. Analysts quoted in the article speculate that OSRAM may instead be spun off with shares given to existing Siemens shareholders.
Further, analysts estimate that the value of OSRAM – the world’s second largest lighting maker after Philips – has fallen 6% to 37%, compared to a few months ago as we reported here in April. This is due to weak markets, high costs, and pricing pressure from Asian manufacturers. Structural changes in the market, including LED technologies and the acquisition of luminaire manufacturers such as Siteco, create pressure for investment.