Osram spikes on formal takeover bid by AMS

Monday, 12. August 2019 10:04

Osram Licht AG reached €35.35 per share on Monday, its highest mark since March 27. The manufacturer of lighting systems yesterday received a binding offer of €38.5 per share from AMS AG. The total sum is 10% above the acquisition deal already agreed with Carlyle Group LP and Bain Capital LP. The proposal was rejected last week by Allianz Global Investors, the largest shareholder.

The statement highlights synergies with an expected annual pretax run-rate above €300 million. The enterprise value comes in at €4.3 billion on €3.7 billion in equity terms and the integration costs were estimated by AMS to be €400 million.

If Osram waives the standstill agreement, AMS would launch the bid by August 15, the announcement reveals. The minimum acceptance level is 70% and the bidder said it could complete the takeover by mid-2020. It added it would divest of the target's digital and consumer general lighting LED businesses and that employees and production units would be preserved. The Austrian company said it has a €4.2 billion committed bridge facility together with an underwritten equity issuance of €1.5 billion.

Osram was 9.64% higher at 9:58 am CET, selling for €34.7 per share. AMS plunged 9% to €44.65 Swiss francs after touching 43.23 per share for the first time in three weeks.

Related Links: ams AGOSRAM Licht AG
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