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Home / switzerland / ASS proposes new takeover offer to OSRM – OSRAM shares rise in double digits, in the ASS Papers clan | 12/8/19

ASS proposes new takeover offer to OSRM – OSRAM shares rise in double digits, in the ASS Papers clan | 12/8/19

Per share to sensor manufacturer AMSA OSRAM Licht AG. Have submitted a takeover bid worth 38.50.

The proposal contains a package of "comprehensive commitments" for all Lichtenzern shareholders, as announced by Ames. Nonetheless, OSRM must first establish a permanent agreement, which the two companies closed on June 4, 2019, before AMS could present them to shareholders.

The transaction will create a global leader in sensor solutions and photonics, with sales totaling around 5 billion euros. Aust Strien Ames expects synergies of more than $ 240 million worth of access and $ 60 million of revenue per year based on previous taxes, most of which are expected to be withdrawn within the first 24 months. The transaction is valued at OSRAM with an enterprise value of 4.3 billion euros.

For the first time in late May, OSRM submitted a non-binding proposal to OSSM. The MDX group granted rioters access to its books, but the need for due diligence was the result of a confidentiality agreement that included a 12-month permanent contract. Ames' interest was known in July, after which the company first reacted, but then again showed interest.

However, OSRAM suspects AIIMS can make it financially.

For OSRAM, the takeover bid has been underway by financial investors Ben and Carlyle since July 22. However, it is questionable whether the minimum acceptance threshold of 70% will be reached for takeover. Withdrawing this condition, Ben and Carlyle decidedly excluded with respect to financing banks. It took them months to set up credit financing for the deal.

AMS wants to get OSRAM production from Asia to Germany

As part of OSRAM's takeover, sensor manufacturer AMS wants to bring LED production parts from Asia to Germany. "The site should be strengthened in Regensburg," Agence CEO Alexander Averek said during a telephone conference. The site is expected to consolidate LED front-end production, while in Asia, LED back-end manufacturing will be bundled in two places.

On Sunday, AMSAS submitted a takeover offer fur for OSRAM Licht AG, with MDX Group valued at 3.3 billion euros.

AMS leader Everke was confident that a permanent agreement would be lifted. By August 15 Gust, ri Strion wants to officially submit their offer. Then the offer fur period should start on September 5.

In order to partially finance the transaction through capital increase, Avark said there should be a shareholder meeting in the fourth quarter to vote. 1.5 billion euros purchase price AMS wants to finance the issue of new shares. OSRAM should be completed in the first half of the year after takeover, the manager expects.

OSRAM wants to negotiate – under the terms

OSRAM intends to initiate merger negotiations with ri-strian people following the AMS takeover bid. Munich's lighting technology However, the company, however, is setting the terms of the merger with the sensor manufacturer.

OSRM also announced that in addition to the price fur pricing and AMS financing concept, OSRAM also needs a stable environment for its further transformation into a semiconductor-based hi-tech photonics company. In addition, security commitments are especially relevant for company employees. The successful conclusion of the negotiations is a prerequisite to the cancellation of the existing stable agreement between Osram and AIIMS.

However, Ames believes that pressure from investors can be huge if the management board refuses a better offer. However, it is unclear whether AIIMS will really make a difference: Compared to the offer fur price, some financial investors are involved in higher cost pricing at OSRAM – and even the Ames offer should not be attractive to them.

Allianz Global Investors, the asset manager with about 10 percent of OSRAM's largest single shareholder, made it clear last week that Ben and Carlyle would not receive their shares. As of Friday evening, the acceptance rate for the 35-euro offer fur was 2.46 percent, as can be seen in the bidders' current water level report. To come up for a takeover, the quota has to be increased by 70 percent from September 5.

To finance the OSRAM takeover, AMS has submitted documents for a bridge loan of EUR 2.5 billion through HSBC and UBS. Part of this bridge financing will be refinanced later through a capital increase in AMS. The two investment banks have a commitment of 1.5 billion euros. OSRAM sees this financial concept as binding and sustainable, as the company has announced.

This is how the stock reacts

OSRAM shares eventually traded up 10.43 percent in XETRA trading. Has reached 34.95. AMS shares fell 11.82 percent to 43.27 Swiss francs in Swiss trading.

Frankfurt (Dow Jones)

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