ams Proposes 38.50 Euros per Share Takeover of Osram

ams offered to pay more than finance investors Bain and Carlyle to take over Osram. Including debt, the company’s all-cash offer values Osram at $4.8 billion.

ams AG, an Austria-based designer and manufacturer of advanced sensor solutions, recently announced the submission of its fully financed proposal for the takeover of Osram Licht AG, a German lighting manufacturer. As per the all-cash takeover offer, ams is willing to make a payment of 38.50 euros per Osram share for 100% of Osram’s share capital. According to ams, the company’s offer, including debt, values Osram at 4.3 billion euros or $4.8 billion. Prior to this, US investment company Bain Capital and US private equity company The Carlyle Group had made their offer of 35 euros per Osram share for the takeover of Osram.

“For all stakeholders of Osram, the proposal is compelling. Therefore, ams trusts that the standstill agreement will be waived by Osram and that Osram will allow its shareholders for benefiting from our offer. This will clear the way for ams and Osram for creating a winning combination. Together, we can rely on great technology, products, and employees for becoming a global sensor solutions and photonics leader, providing tangible value to our customers. We offer a long-term plan, which we can execute from a strong position, based on continuous growth and investment,” said CEO of ams, Alexander Everke.

ams plans to cut down its reliance on Apple for business

Although Osram is struggling with a broader economic slowdown and lack of growth in the automotive industry, it carries potential as a supplier for autonomous and connected vehicles. On the other hand, ams is making strong investment in technology for self-driving vehicles. The company is also looking to reduce its dependence on Apple as a supplier of sensors for facial recognition technology. All of these factors may have probably led ams to take over Osram.

In June 2019, ams signed a customary closing agreement with Osram for gaining access to due diligence. The agreement includes a one-year standstill agreement, which is currently an obstacle for ams to launch its takeover offer for Osram. ams will wait till August 15 to see if Osram waives the standstill agreement, so that the company can launch its offer.

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