Offer for Osram withdrawn

Author: Marcus Schilling
Date: 17.07.2019

No bidder battle

In the course of the takeover of one of the best-known German industrial companies, Osram, there will probably be no competition after all. The sensor manufacturer AMS has withdrawn its bid worth billions, as an evaluation showed that there was “no sufficient basis” for further talks. AMS announced this in a press release.

With its offer, the Austrian company would have outdone the two competitors and US financial investors Bain Capital and Carlyle: AMS had previously submitted a “non-binding expression of interest” amounting to 3.7 billion euros – 300 million euros higher than the Americans’ offer.

The stock market reacted positively: the share rose to 35 euros. The Management Board, on the other hand, was not enthusiastic and fears that the “probability of tradition” will be “very low”. Instead, the Americans’ binding offer of 35 euros per share was preferred. AMS offered 38.50 euros, but had to take out a “temporary bank loan” of 4.2 billion euros. Osram reacted with “considerable doubts about the financial viability”.

Poor development

Osram is up for sale due to its poor performance in the last one and a half financial years. A decline in sales of 11 to 14 percent is expected this year.

Osram mainly produces LEDs and optoelectronics, which are mainly purchased by car and smartphone manufacturers. However, both industries are not performing well, which has hit the company’s business hard. In addition, a lot of money was invested in increasing production capacity.

Osram will soon be delisted in the USA. Shareholders should be able to accept or reject the offer by the beginning of September.