Leyard Halts Trade on China Bourse, MLS Delays Trade Resumption

Chinese LED manufacturers Leyard and MLS are both suspending trade on the Chinese bourse as the two companies undergo major investment and asset restructures.

Leyard has suspended trade on the Chinese bourse as of Aug. 10, 2016.

China Securities Regulatory Commission has granted Leyard’s private placement application, where the company will issue 120 million new shares. The company will be suspending trade on the Chinese bourse starting Wednesday for five trading days, and will resume trade once buyers complete price negotiations.

MLS Delays Resuming Trade on China bourse

MLS announced Wednesday it will not be able to resume trade on schedule on Aug. 15, 2016, due to major restructures in international assets, which Chinese government commerce agencies, National Development and Reform Commission, and State Admission for Foreign Exchange are still reviewing.

Osram announced a Chinese consortium headed by IDG that includes investors MLS, and Yiwu State-Owned Assets Operation Center (Yiwu) had acquired the German company’s general lighting business arm LEDvance for EUR 400 million (US $439.58 million) on July 26, 2016.

In the LEDVANCE acquisition transaction, MLS role is mostly a Limited Partner (LP), while Harmony Zuoyue will function as a Special Purpose Vehicle (SPV). Once the acquisition business transaction is completed,  Harmony Zuoyue  will have a 100% stake in LEDVANCE GmbH registered in Germany, and U.S.-based LEDVANCE LLC. Details of the acquisition transaction are unavailable, but could take the form of IPO or cash.

Members of the LEDVANCE acquisition consortium inlcuding MLS, Yiwu and Harmony Zuoyue have signed a MOU to negotiate details of the transaction. Harmony Zuoyue is a MLS affiliated company.

MLS has commissioned independent financial consultants, law firms, and accounting firms to develop a company asset restructure solution, that are still reviewing details of the transaction. The top Chinese LED packager will accelerate asset restructures during the trade suspension period.

According to MLS statement, it will announce the important asset restructure solution on Sept.15, 2016. If it fails to release details of the restructure by that date, it will apply for another trade suspension extension from the Shenzhen Stock Exchange.

(Edtor's Note: The original translation erroneously wrote Yiwu will hold 100% stake in LEDVANCE after the acquisition transaction has been changed to Harmony Zuoyue will fullyhis takeover LEDVANCE on Aug. 12, 2016. )

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