20160827_syvania

Sylvania to be sold to the Chinese

Havells India is to sell an 80% stake in Sylvania to Shanghai Feilo Acoustics Co Limited, a listed company on the Shanghai Stock Exchange. State-owned Inesa is one of Feilo’s key shareholders.

The deal puts the equity value of Havells Sylvania at €186 million (US$204.6 million). Havells will receive €148.8 million (US$163.7 million) on the completion of the deal by February 2016. Havells will sell its remaining 20% stake in the next 3-5 years.

Havells acquired Sylvania in 2007 and, according to India’s Economic Times, invested around €104 million (including interest, US$114.4 million) over the last seven years. Under the deal, the entire debt of about €30 million (US$33 million) in addition to the pension liability of Sylvania will be transferred to Feilo.

Commenting on the deal, Anil Rai Gupta (pictured), chairman and managing director of Havells India and director of Havells Holding Limited said: “Havells Group has successfully contributed to develop Sylvania into an entrepreneurial organization with a global objective and local execution empowerment. Feilo is keen to preserve the successful entrepreneurial fabric of the Sylvania family. We are convinced that the current alliance with Feilo has the requisite attributes to gain immensely from emerging trends in disruptive lighting.”

Zhuang Shenan, president of Shanghai Feilo Acoustics, said: “Feilo is proud to partner with Sylvania to create a world leading lighting brand. Feilo would contribute to Sylvania through a wide portfolio of competitive LED products.”

Havells India shares jumped nearly 8% after the announcement.

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