22.07 0.00 (0.00%)
After hours: 4:13PM EDT
|Bid||22.03 x 800|
|Ask||22.61 x 1400|
|Day's Range||22.03 - 22.44|
|52 Week Range||15.09 - 25.99|
|Beta (3Y Monthly)||1.58|
|PE Ratio (TTM)||9.16|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||1.47 (6.77%)|
|1y Target Est||27.46|
(Bloomberg Opinion) -- A 12,000-foot-high Alpine mountain range and 250 miles separate AMS AG’s base in the Austrian town of Premstaetten and Osram Licht AG’s Munich headquarters. The Austrian firm must overcome much bigger obstacles in its attempted takeover of the German lighting-maker. After months of toing and froing, AMS finally tabled a 3.7 billion-euro ($4.1 billion) approach for Osram late on Sunday. The deal would trump a 3.4 billion-euro bid from Bain Capital and Carlyle Group LP that Osram has already accepted. From that perspective, it looks very attractive to the German company’s investors. The approach offers a glimmer of hope: the Bain-Carlyle bid appears dead in the water after being rejected by Allianz Global Investors, Osram’s biggest shareholder, last week.The difficulty is on the AMS side. Chief Executive Officer Alexander Everke hasn’t yet done enough to warrant lifting the company’s debt ratios to levels well above most peers in exchange for returns in the near term that are likely to be below capital costs, based on planned synergies and analyst earnings forecasts. The company is confident returns will exceed costs in the second year after the deal completes. That will be contingent on hitting some ambitious savings targets. In Everke’s three years at the helm, AMS has generated significantly lower returns for shareholders than the Philadelphia Stock Exchange Semiconductor Index, despite major outlays on acquisitions and manufacturing capacity. Sure, AMS has improved its sensor offering and, after a bumpy few years, might finally be starting to demonstrate returns on that spending.But integrating Osram, with its 24,300 employees globally, is a significantly greater challenge than AMS’s biggest acquisition to date: The 2016 deal to buy Heptagon, with just 830 employees, for $570 million.To fund the takeover, AMS plans a 1.5 billion-euro equity increase, underwritten by UBS Group AG and HSBC Holdings Plc, which 50% of shareholders will need to approve at an extraordinary general meeting in the fourth quarter. In return, it will get a company whose core automotive market is shrinking.The offer is a gamble on carmakers adopting more and smarter sensor technology for the vehicles they are still able to sell. Osram’s strongest business has traditionally been car headlamps, but in recent years it has expanded into different parts of the optical spectrum, such as infra-red. AMS is optimistic that it can package those products with its sensors to work in autonomous cars (which might need laser-based environmental sensors) and for in-cabin sensing (to tell, for example, if the driver has fallen asleep).It seems a hell of a lot of upfront risk given that it’s unclear what kind of sensors autonomous cars will need when they hit the roads on a significant scale in perhaps a decade’s time. AMS was unwise to invest so heavily in smartphone sensors when it did. But the automotive sensor market is not the best way to diversify.\--With assistance from Chris Hughes.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Stephanie Baker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Deutsche Bahn AG, Germany’s state-owned rail operator, has attracted interest from more than 10 buyout firms and competitors for all or parts of its European transport unit Arriva, people familiar with the matter said.Apollo Global Management LLC, Carlyle Group LP and Lone Star Funds are among suitors that made initial offers for the whole business ahead of Thursday’s deadline, according to the people. It could fetch about 3.5 billion euros ($3.9 billion) to 4 billion euros, the people said, asking not to be identified because the discussions are private.Rival European transportation firms including Go-Ahead Group Plc, Stagecoach Group Plc and Transdev Group submitted bids for parts of U.K.-based Arriva, the people said. Singapore’s ComfortDelGro Corp., which owns British bus operator Metroline Ltd., also made an offer for some of Arriva’s assets, one of the people said. The sale also attracted preliminary interest from French national train operator SNCF’s Keolis SA unit, according to the people.Deutsche Bahn announced plans in March to divest Arriva to help pay off debt and is exploring a sale as well as an initial public offering in Amsterdam. It acquired the company, which employs more than 53,000 people in 14 European countries for its bus and rail operations, for 1.6 billion pounds ($1.9 billion) in 2010.Representatives for Apollo, Carlyle, Deutsche Bahn, Lone Star, Stagecoach and Transdev declined to comment. ComfortDelGro couldn’t immediately be reached for comment during a public holiday Monday in Singapore. Representatives for Go-Ahead and Keolis also didn’t respond to requests for comment.(Updates with ComfortDelGro interest in third paragraph.)\--With assistance from Marcus Wong and Jan-Henrik Förster.To contact the reporters on this story: Aaron Kirchfeld in London at email@example.com;Sarah Syed in London at firstname.lastname@example.org;Simon Foy in London at email@example.comTo contact the editors responsible for this story: Daniel Hauck at firstname.lastname@example.org, Ben Scent, Fion LiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- AMS AG re-entered the battle for Osram Licht AG with a 3.7 billion euros ($4.1 billion) offer, days after a major shareholder rejected a lower bid by rivals for the German light and sensor maker.Osram soared as much as 11% Monday, following the weekend approach from AMS that values the target at 38.50 euros a share. That compares with the 35 euros-a-share from private-equity firms Bain Capital and Carlyle Group, thrown into jeopardy last week when top investor, Allianz Global Investors, rejected it as too low.The new offer is in line with an earlier bid that Austrian sensor maker AMS mooted but then withdrew almost a month ago.Osram “raised valid concerns in the past, and I think with the offer we provided them yesterday, we answered all their concerns,” AMS Chief Executive Officer Alexander Everke said in a call with reporters on Monday. “We have been looking at Osram for a long time.”AMS shares fell 8.7% in Zurich. Osram traded at 35.09 euros as of 9:07 a.m. in Frankfurt.AMS is in regular contact with investors, including Allianz, Everke said on the call. Allianz is a shareholder of both companies, holding about 0.38% in AMS and 9.3% of Osram, according to data compiled by Bloomberg.Osram became a takeover target after a series of profit warnings and a public spat over strategy with Siemens AG, which spun off the division in 2013. Its earnings have suffered because of the company’s exposure to the automotive industry, which accounts for over half of its revenue.Carmakers and suppliers are grappling with shrinking demand in China and Europe and the expensive transition to electric cars. Investors also lost confidence in the ability of CEO Olaf Berlien and management to turn the company around. The stock has lost more than half its value since peaking in early 2018.“This counter bid will test how keen the private-equity consortium is for the Osram asset as AMS has now secured financing to offer 10% more per share,” Morgan Stanley analyst Lucie Carrier said in a note.If AMS were successful in its takeover attempt, it would sell off Osram’s digital division that makes lighting controls for use in horticultural and medical systems, among others. The company would also not touch Osram’s collective bargaining agreements for five years, according to the statement.(Updates with AMS CEO comment in sixth paragraph)\--With assistance from Eyk Henning.To contact the reporter on this story: Oliver Sachgau in Munich at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") downgraded NEP/NCP Holdco, Inc's (NEP) Corporate Family Rating (CFR) to B3 from B2, Probability of Default Rating (PD) to B3-PD from B2-PD, senior secured 1st lien credit facilities to B2 from B1 and senior secured 2nd lien term loan to Caa2 from Caa1. The outlook for NEP/NCP Holdco, Inc and NEP Europe Finco B.V. is stable. "Moody's expectations for negative free cash flow in 2019 due to lower operating performance than originally forecasted at the time of recapitalization and high capital expenditures, as well as its anticipation of further debt-funded M&A, drive the ratings downgrades," said Alina Khavulya, Moody's Senior Analyst.
Pivotal Acquisition Corp. CEO Jonathan Ledecky and KLDiscovery CEO Chris Weiler are Merging Companies By John Jannarone Anyone who follows daily news knows that civil lawsuits against corporations aren’t going away. And between emails, texts, and messaging across several devices, it’s clear that data is growing while getting harder to harness. The good news: A […]
(Bloomberg Opinion) -- The news about the trade war gets worse by the day. The same goes for the auto industry. That makes the attempt to squeeze a higher price for automotive lighting group Osram Licht AG one of the boldest activist interventions in recent M&A history.Allianz Global Investors thinks the 4 billion-euro ($4.5 billion) offer is at a “knock-down” price and says it is minded to reject it. The technicalities of this transaction mean the refusenik, with a 10% holding, is in a strong position to kill the deal. Bain Capital and Carlyle Group need owners of 70% of Osram’s shares to accept to get the takeover financed. The large cohort of individual investors and passive funds on the register had already made that a challenging hurdle.The price is certainly underwhelming. Between late March, when Osram issued a profit warning, and the deal being agreed in July, the shares traded at an average of 28.81 euros. The offer is 22% more than that. Allow for the bid speculation that was supporting the stock, and the premium is more like 30%, a more typical top-up. But the shares were trading for far more two years ago.The offer values Osram at almost 10 times estimated Ebitda for 2020, a valuation it last commanded in 2017. The snag is that the weather today is a better indicator of the weather tomorrow than the weather two years ago. Other suppliers to the auto industry, such as Germany’s Contintental AG, have been reeling from slowing demand.Osram’s managers don’t have a plan of their own to lift the stock to the offer level. If the bid fails, they would have a major task on their hands to rebuild credibility. There would have to be a new management team and an attempt to form a new strategy.It is quite something that Allianz is prepared to risk that outcome. This may be a ploy to get Bain and Carlyle to raise their offer despite the fact that the case for buying Osram seems, if anything, to have weakened in recent weeks. It’s possible that they could pay a higher price and still reap double-digit returns by restructuring Osram out of the public eye. But those profits would be less certain.Bain and Carlyle cannot lower the acceptance threshold to get the deal over the line without having to fund the whole thing in equity. That would defeat the whole idea of a leverage buyout. So they will have to pay more for an asset that has become more risky. Rival suitor AMS AG has yet to lay down an offer that would force the issue. Private equity might blink first – but it is a big gamble.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Real estate investment firm Hackman Capital Partners has acquired the company that operates Manhattan Beach Studios from Carlyle Group for $650 million.
CFO of The Carlyle Group Lp (30-Year Financial, Insider Trades) Curtis L. Buser (insider trades) sold 80,381 shares of CG on 08/01/2019 at an average price of $22.85 a share. Continue reading...
One of the biggest financial service companies around is changing the way it does business, and will give shareholders more of a voice than before. Cha-Cha-Changes The Carlyle Group has announced plans to become a “C” corporation. Before this news, the financial giant was a publicly traded partnership, and it will now be the first U.S. private equity firm to allow shareholder votes. Upping Its Valuation: Major stock indexes such as S&P; Dow Jones and FTSE Russell have been moving to exclude companies with several different classes of stock from their indexes. By converting to a corporation and using a traditional “one share, one vote” structure, Carlyle is hoping that it can get included in these indexes and find a bigger marketplace. Sharing Is Caring Carlyle's single class of shares will give “greater say to the roughly 30% of shareholders who aren’t insiders at the firm” and will satisfy FTSE Russell’s minimum requirements for public-shareholder voting rights. Dual Citizens Though power will remained pooled among its executives, who have 66% voting power, Carlyle's adoption of a one share, one vote policy it notable because private equity firms are known for being cloistered off and secretive. And although Carlyle's majority stakeholders have said they'll vote in a block for up to the next five years, bringing shareholders into the fold—and allowing them to proxy vote on issues like executive pay—is a significant, modern shift yet to be adopted by other new kids on the block. -Michael Tedder Photo: Issei Kato/ REUTERS
Carlyle Group LP emulated its peers on Wednesday with plans to convert from a publicly traded partnership into a corporation, and went one step further by announcing it will become the first U.S. private equity firm to hold shareholder votes. Insiders own 66% of Carlyle, and the vast majority of them have committed to voting their shares as a block for up to five years, the firm said. The move could end up boosting Carlyle's valuation, because it will allow its inclusion in indices that exclude publicly traded partnerships.
D.C.-based private equity giant The Carlyle Group LP (NASDAQ: CG) is having a big day — it officially announced its conversion to a C-corp, at the same time it beat analyst estimates on revenue and earnings for the second quarter of 2019 and Co-CEO Glenn Youngkin announced the company had "eclipsed" its $100 billion fundraising goal it set about three-and-a-half years ago. The company, which had operated until now as a publicly traded partnership, will essentially undergo a series of incredibly complex tax and accounting changes internal to the firm to help flatten its shareholder structure and make it more attractive to investors, the company said in a press release. A fixed dividend: The company will offer a $1 per share dividend, or about a 4% dividend yield, which Youngkin said was double the average dividend level for the S&P 500 and more dependable than its historic variable yield.
Carlyle’s units were up slightly after the firm announced strong quarterly results and said it will convert from a partnership to a corporation in January 2020.
The Carlyle Group LP dropped a bomb along with its second-quarter earnings Wednesday: the publicly traded investment firm will restructure to become a full C-corporation, the more traditional public company model, effective Jan. 1. Carlyle (NASDAQ: CG), founded in D.C. in 1987 by David Rubenstein, Bill Conway and Dan D’Aniello, has until now operated as a publicly traded partnership. The investment giant will also convert all of its shares to a single class, creating a "one-share/one-vote" at the time of the of the Jan. 1 C-corp conversion. Carlyle will pay an annual dividend of $1 per share, the company added in a press release. The move will effectively give shareholders more of a voice in Carlyle’s affairs. It will also allow Carlyle into indices and benchmarks that currently do not include partnerships in their portfolios.
Insiders own 66% of Carlyle, and the vast majority of them have committed to voting their shares as a block for up to five years, the firm said. The move could end up boosting Carlyle's valuation, because it will allow its inclusion in indices that exclude publicly traded partnerships. Carlyle may also be included in more indices than its peers, such as the Russell and the S&P, because it will be the first publicly traded private equity firm to abolish its dual-class shares.
Global investment firm The Carlyle Group (CG) announced today that it is converting from a publicly-traded partnership to a Full C-Corporation under Delaware law, effective January 1, 2020. The Carlyle Group also released its unaudited results for the second quarter ended June 30, 2019. Please visit the following links to review Carlyle’s Investor Presentation on its Conversion to a Full C-Corporation and Carlyle’s Second Quarter 2019 Results.
The private-equity firm says the conversion will allow investors to buy its shares without creating the need for a Schedule K-1, an Internal Revenue Service tax form that's used to report earnings from partnerships.
The Carlyle Group (NASDAQ: CG ) announces its next round of earnings this Wednesday, July 31. Here is Benzinga's everything-that-matters guide for this Wednesday's Q2 earnings announcement. Earnings and ...
The first Rise of the Rest seed fund had big backers, including Amazon.com founder Jeff Bezos.
(Bloomberg) -- Carlyle Group LP is winding down a $4 billion energy credit business after two co-heads recently left the firm.The departures of David Albert and Rahul Culas triggered a so-called key-man event on the Carlyle Energy Mezzanine Opportunities Fund II, according to people with knowledge of the matter. The remaining team at the energy credit business will discontinue investing from the $2.8 billion pool and manage out the rest of the portfolio.“The team remains focused on maximizing the value of our investments in the CEMOF I and II portfolios,” a representative for Carlyle said in a statement Sunday. “We will continue to pursue energy credit across Carlyle’s Global Credit platform through multiple strategies executed by our direct lending, opportunistic credit, and distressed teams.”Albert and Culas declined to comment.Carlyle’s energy mezzanine group faced difficulties with its first fund amid oil price declines in recent years. Some peers, including Blackstone Group Inc., faced similar headwinds. Blackstone’s credit business saw its $1 billion special situations fund fall 12% in 2018 before accounting for expenses, Bloomberg reported in January. Carlyle’s first energy mezzanine fund was held below cost at the end of March and posted a negative internal rate of return, according to the firm’s first-quarter earnings report.The Carlyle team mostly has invested in the debt of energy and power companies in the U.S. and Canada. Mezzanine debt gets payout priority before equity, but after senior debt, in a bankruptcy. The Washington-based firm’s website lists a dozen senior people on the energy credit team. Its first fund, started in 2010, raised $1.4 billion.Its second fund is doing better, producing a 1.1 times multiple as of March 31, according to an earnings report. The fund was 39% invested as of that date.Albert and Culas worked together in the project and structured finance group at Morgan Stanley before joining Carlyle in 2010.Carlyle’s global credit business manages about $46 billion, including direct lending, distressed and special situations and aviation finance strategies.(Updates with how much fund II invested in seventh paragraph.)\--With assistance from Gillian Tan.To contact the reporter on this story: Sabrina Willmer in New York at email@example.comTo contact the editors responsible for this story: Alan Mirabella at firstname.lastname@example.org, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
TROY, Mich., July 29, 2019 /PRNewswire/ -- Meritor, Inc. (NYSE: MTOR) today announced that it has successfully completed its acquisition of AxleTech from global investment firm The Carlyle Group (CG). The previously announced transaction enhances Meritor's growth platform with the addition of a complementary product portfolio, including a full line of independent suspensions, axles, braking solutions and drivetrain components. AxleTech will operate within Meritor's Aftermarket, Industrial & Trailer segment.
Moody's Investors Service ("Moody's") Moody's Investors Service ("Moody's") has today assigned a B2 corporate family rating (CFR) and B2-PD probability of default rating (PDR) to F-Brasile S.p.A. ("F-Brasile" or "the Issuer"), an indirect holding company of Italian advanced aerospace forgings supplier Forgital Italy ("Forgital"). At the same time, Moody's has assigned B2 instrument ratings to the Issuer's proposed USD505 million 7-year senior secured notes, issued by F-Brasile S.p.A. and F-Brasile US, LLC, and a Ba2 rating to the Issuer's proposed EUR80 million 7-year super senior secured revolving credit facility (SSRCF). The proceeds from the proposed notes issue and EUR512 million of sponsor cash equity will be used to finance the approximately EUR950 million enterprise value of Forgital (9.5x multiple based on EUR99.7 million normalized EBITDA as of LTM March 2019) and relevant transaction fees and expenses.
David Rubenstein is co-founder and co-executive chairman of The Carlyle Group, one of the world's largest private equity firms. It manages $223 billion across 362 investments around the world. Rubeinstein joins "CBS This Morning" to discuss why the Dow fell 800 points Wednesday and whether it means we're headed for a recession.
Jul.31 -- Ingo Bank, chief financial officer of Munich-based Osram Licht AG, a lighting and laser-diode maker, talks about the company's financial results, and the reason why it has told shareholders to accept a 3.4 billion-euro ($3.8 billion) takeover offer from Bain Capital and Carlyle Group. Osram's third-quarter profit slumped to miss analysts expectations. Bank speaks with Anna Edwards and Matt Miller on "Bloomberg Markets: European Open."