|Bid||40.11 x 25900|
|Ask||40.13 x 17000|
|Day's Range||39.99 - 40.19|
|52 Week Range||24.60 - 41.92|
|Beta (3Y Monthly)||0.17|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 12, 2019|
|Forward Dividend & Yield||1.11 (2.76%)|
|1y Target Est||42.81|
For private equity groups and other suitors of listed German companies, 2019 has turned into a year of discontent. Three of four major bids to buy out public German groups have ended in tears, demonstrating the hurdles that bidders must overcome to get deals done.
Austrian sensor company AMS launched a new takeover bid for Germany Osram Licht , offering 41 euros a share and setting a lower minimum acceptance threshold of 55% for the deal to go through. Osram welcomed the offer, saying it was in constructive discussions with AMS, after rivals Advent and Bain Capital dropped out of contention. AMS, maker of the sensor array that unlocks the Apple iPhone using facial recognition, built up a stake of 19.99% in Osram via an earlier offer at the same valuation that failed to win the support of enough shareholders.
Shares in Apple supplier AMS slid on Monday after investors were spooked by the company’s commitment to buying German lighting firm Osram, despite a failed takeover bid.
(Bloomberg Opinion) -- The heated auction between buyout firm Bain Capital and Austria’s AMS AG for the German LED-maker Osram Licht AG has ended in no deal. The prospect of a transaction being rekindled in the near term looks bleak — though not impossible over the longer run. It beggars belief that a tense round of bidding can culminate in no more than a tangled mess. But this is regrettably often the way with German M&A.AMS, which makes sensors and supplies Apple Inc., made a tactical error last week by raising its offer to 4 billion euros ($4.4 billion) from 3.7 billion euros to pre-empt a possible counter-bid from Bain and fellow private equity firm Advent International. It had already lowered the acceptance threshold (the level of shareholder support it would require before pushing ahead with the deal) to just 63% of Osram’s shares. Yet its sweetener sowed confusion. Retail shareholders didn’t tender to its supposed knockout offer in big enough numbers.Meanwhile, some of Osram’s hedge fund investors probably withheld their support, believing that they could squeeze more money later from AMS for their own shares — a gambit that has backfired for now.Osram shareholders currently have no deal at all and the path to a transaction is long and winding. By default, AMS can’t rebid quickly without the assent of both Osram and Germany’s financial regulators. It would have to demonstrate that any fresh offer would have a better chance of succeeding. That would mean sweetening again, either through the price or by cutting the acceptance hurdle one more time. AMS’s lenders may balk at either approach.The Austrian company’s only certain way of reviving the takeover is to build an Osram stake exceeding 30% by buying shares in the market. That would trigger a requirement to bid under German takeover laws. The snag is that AMS can’t amass that size of stake without securing certain antitrust approvals first.These dynamics should play into the hands of Bain and Advent, although they’ll have to counter the fact that AMS has already amassed a 20% stake in Osram. As such, a bid from the buyout firms would have to be at a level that forces AMS to sell. Implicitly that would be more than what it paid for its stake, assuming the Austrian group doesn’t simply need to raise cash at some point.Maybe Osram’s management will discover some new selling point that would persuade Bain and Advent to make a punchy proposal. But it would need to dig up some real gold. There’s no justification at present for the private equity firms going higher when they don’t bring the cost savings that you’d get from merging two industrial companies.Having blown the best part of 800 million euros on that blocking stake, AMS still looks best place to prevail in the end. But unless something changes, the end — and a final price — could be some way away.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: James Boxell 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.
(Bloomberg) -- The battle for control of Osram Licht AG is set to enter a new round after Austria’s AMS AG vowed to keep fighting after a sweetened 4 billion euro ($4.4 billion) offer failed.AMS, a supplier to Apple Inc., will seek a regulator nod to raise its 19.99% stake in Osram. As the biggest shareholder in the German lighting maker, AMS’s approval has become key for any would-be rival bidder. Osram has said private equity investors Bain Capital and Advent International are inspecting its books with a plan to make an offer.“We doubt private equity will launch a superior bid given AMS has built up a 19.99% stake in the meantime,” Commerzbank said in a note. “While we cannot rule out that AMS might make another push, timing is yet unclear, so we attach a greater likelihood to a potential cooperation only.”German takeover law doesn’t allow a new bid within one year unless the target gives its consent, as well as stipulating that an offer needs to be made if an investor crosses a 30% ownership threshold. AMS’s pursuit took a setback Friday, when it announced its offer failed to attract enough support from shareholders. Osram investors had tendered only 51.6% of their shares, short of a 62.5% threshold.Osram fell as much as 4.5% to 39 euros, the most in two months, while shares of AMS declined as much as 5.8%.AMS’s failed bid extends a period of protracted uncertainty for Osram, which emerged as a takeover target last year after warning trade friction and a cooling of the car industry had clouded the outlook for 2019. The former division of Siemens AG gets about half of its revenue from the automotive sector. Subsequent profit warnings further eroded investor confidence, sending shares tumbling until the takeover battle took hold.Osram confirmed talks with Bain and Carlyle, which was later replaced by Advent, in February after they were first reported by Bloomberg News. A bidding war broke out in July when AMS lobbed a higher offer. The Austrian company has drawn criticism from Osram unions and employee representatives on the board, as well as management due to concerns about promised synergies as well as the deal’s financing.Following the months-long takeover battle against private equity suitors, AMS said the combination remains compelling and pledged to continue to “explore strategic options” for a takeover. Bain and Advent are inspecting Osram’s books “with a view to submitting an offer,” Osram said in a separate statement.AMS, a supplier of facial recognition technology for Apple’s iPhone, has said it would invest in the company’s Regensburg, Germany site that makes high-tech chip components, but would sell the digital division that makes lighting controls, stage and theater lights.Century-old Osram, based in Munich, started out making light bulbs, pivoting in recent years under Chief Executive Officer Olaf Berlien to products like iris scanners and infrared emitters. The refocus was contentious, leading to a boardroom clash over strategy and a public spat with Siemens before the German engineering giant sold down its stake.To contact the reporter on this story: Oliver Sachgau in Munich at email@example.comTo contact the editors responsible for this story: Tara Patel at firstname.lastname@example.org, Elisabeth Behrmann, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- AMS AG vowed to keep pursuing the acquisition of German lighting specialist Osram Licht AG after its 4-billion euro ($4.4 billion) bid failed to garner enough support from shareholders.Osram investors tendered 51.6% of their shares, AMS said Friday in a statement, falling short of a 62.5% threshold set by the Austrian optical sensor maker for the deal to be successful.Following a months-long takeover battle against private equity suitors, AMS said the combination remains compelling and pledged to continue to “explore strategic options” for a takeover. The Apple Inc. supplier has emerged as the biggest shareholder in Osram, with a 19.99% direct holding.In a separate statement, Osram said Bain Capital and Advent International are inspecting its books “with a view to submitting an offer.”The defeat of AMS’s latest bid has extended a protracted period of uncertainty for Osram, already struggling with a market slowdown. AMS last week raised its offer to 41 euros a share from 38.50 euros, catching the rival private equity suitors off guard. The investor pair had been exploring a higher counteroffer after Bain had previously made a 35 euro-a-share offer with Carlyle Group.“Osram received an indicative offer for takeover by Advent and Bain Capital but as for now, no formal offer has been disclosed,” Morgan Stanley analyst Lucie Carrier said in a note. “We see risks that the Osram share will retreat toward its pre-M&A bids levels unless new announcements are made.”Osram emerged as a takeover target last year after warning trade friction and a cooling of the car industry had clouded the outlook for 2019. The former division of Siemens AG gets about half of its revenue from the automotive sector. Subsequent profit warnings further eroded investor confidence, sending shares tumbling until the takeover battle took hold.Osram confirmed talks with Bain and Carlyle in February after they were first reported by Bloomberg News. A bidding war broke out in July when AMS lobbed a higher offer. The Austrian company has drawn criticism from Osram unions and employee representatives on the board, as well as management due to concerns about promised synergies as well as the deal’s financing.AMS, a supplier of facial recognition technology for Apple’s iPhone, has said it would invest in the company’s Regensburg, Germany site that makes high-tech chip components, but would sell the digital division that makes lighting controls, stage and theater lights.“We intend to leverage our position as Osram’s largest shareholder in a dialog with Osram as we continue to pursue the full acquisition of the company,” AMS Chief Executive Officer Alexander Everke said in the statement, adding that the deal is intended to keep Europe “at the forefront of optical technology globally.”Century-old Osram, based in Munich, started out making light bulbs, pivoting in recent years under Chief Executive Officer Olaf Berlien to products like iris scanners and infrared emitters. The refocus was contentious, leading to a boardroom clash over strategy and a public spat with Siemens before the German engineering giant sold down its stake.(Adds analyst comment in sixth paragraph.)\--With assistance from Eyk Henning and Sarah Syed.To contact the reporters on this story: Oliver Sachgau in Munich at email@example.com;Stefan Nicola in Berlin at firstname.lastname@example.orgTo contact the editors responsible for this story: Tara Patel at email@example.com, Stefan NicolaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Bain Capital has put shareholders in Osram Licht AG, a German LED light maker, on the spot.The U.S. private equity firm is dangling a half-baked takeover bid that would top the 3.7 billion euro ($4 billion) offer tabled by Austria’s AMS AG, a manufacturer of sensors. But there are good reasons to doubt its credibility: Bain has simultaneously lost the support of fellow buyout titan Carlyle Group, which had backed a joint 3.4 billion euro deal in July. Bain has had to pull in another private equity firm, Advent International, as a last-minute substitute.The original Bain-Carlyle transaction had Osram’s support until AMS bid more. Carlyle’s reluctance to help its former partner get back into the auction says a lot about the risks of this acquisition. Osram is not in good health. Some analysts think AMS has overreached. And a private equity consortium wouldn’t even benefit from the cost savings that an industrial buyer such as AMS could extract from a merger. It needs a very good reason to write a bigger check.In fairness, the world has changed slightly in recent months, making a higher Bain bid a bit easier to justify. The autos sector served by Osram has rallied since mid-August. And financing conditions for this deal have improved, as AMS has demonstrated with its own offer. A buyout now might be able to raise more debt, and more cheaply, than Bain first envisaged.Such factors evidently didn’t persuade Carlyle, though. The snag for shareholders is that Bain and Advent aren’t yet good for the money. Indeed, it’s not even clear at what price they may bid. If the duo was ready to move now, it could probably get away with just matching AMS. Its bid would face fewer obstacles than the one from AMS, which needs a big rights offer to get done.With a big heave, Bain and Advent might just get something on the table before AMS’s offer expires. They need to get clearance from the German financial regulator while Advent needs to do some due diligence of its own. If they can’t move quickly, Osram shareholders will be loath to let the AMS offer lapse, though there are two reasons why they might.The first is that Osram’s board thinks the AMS offer and strategy is less good for stakeholders than a Bain-led private equity deal. If investors are serious about their responsibilities as good corporate stewards, they will weigh that seriously alongside the financial value they would receive by taking the Austrian offer. The second reason is that Bain and Advent are unlikely to want to damage their credibility by doing anything than coming back with a strong and generous offer.It would help investors if they could at least have an indication of the number Bain and Advent have in mind. The duo is talking about a price that is “meaningfully” higher. It’s time now to come clean on the meaning of meaningful, and demonstrate that any such proposal would have solid financing. Otherwise Osram shareholders are being asked to take a massive punt that Carlyle is wrong.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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.
(Bloomberg) -- Bain Capital and Advent International are preparing a fresh offer for German lighting maker Osram Licht AG, ratcheting up a bidding war with Austrian sensor maker AMS AG.The two buyout firms will spend the coming weeks conducting due diligence, before deciding on a binding proposal, Osram said in a statement on Wednesday, confirming an earlier report by Bloomberg News. The offer will “meaningfully” exceed AMS’s 38.50 euros-a-share bid worth 3.7 billion euros ($4.1 billion), it added.Osram gained 2.2% to 38.79 euros as of 2:12 p.m. in Frankfurt.Bain’s pursuit of Osram has fresh momentum after the firm teamed up with Advent as a replacement for earlier partner Carlyle Group, which backed away. The private equity firms will need to snatch the initiative away from AMS, which trumped an earlier offer and won the support of Osram’s board.The door is open to a come back. Management of the German lighting maker expressed some reservations about AMS’s proposal and Osram’s workforce had come out in favor of Bain and Carlyle. Today’s indicative offer played to union’s concerns.“We believe the future of Osram needs to be well aligned with all stakeholders, including unions and employee representatives,” Bain and Advent said in a letter to Osram, cited in the release.The buyout group is prepared to “make clear commitments in this respect,” according to the release, adding that the board of Osram wants the non-binding offer from Advent and Bain to be “further concretized.”AMS Chief Executive Officer Alexander Everke has been speaking with his investors across Europe, the U.S. and Asia to build the case for buying Osram.He said last week that his planned takeover of the company garnered “strong support,” prompting AMS to lower the minimum acceptance rate for its offer to 62.5% from 70%. He needs the backing of shareholders to push through a capital raise to finance the deal.(Updates with comments from Osram from first paragraph.)To contact the reporters on this story: Sarah Syed in London at firstname.lastname@example.org;Eyk Henning in Frankfurt at email@example.com;Oliver Sachgau in Munich at firstname.lastname@example.orgTo contact the editors responsible for this story: Tara Patel at email@example.com, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Austria semiconductor group says an extraordinary shareholder meeting at the end of October is expected to vote on the approval of a 1.5 billion-euro ($1.66 billion) equity issuance.
Austrian sensor specialist AMS made a 4.3 billion euro($4.8 billion) counter-offer for larger German lighting group Osram on Tuesday, raising the prospect of a bidding war with private equity duo Bain Capital and Carlyle . AMS made its 38.50 euro ($42.90) per share offer for Osram, which is 10% above the price offered by the buyout firms, after approval from German finance watchdog Bafin, adding that the acceptance period will run from Sept. 3 until Oct. 1. The bid automatically extends the period for the offer by Bain Capital and Carlyle Group.
Shares in German lighting specialist Osram Licht were indicated 12% higher in Frankfurt early trading after rival AMS launched a 38.50 euros ($43.13) a share takeover designed to trump a rival 35-euros-a-share offer from Bain and Carlyle. Austria's AMS triggered a bidding war by saying it was ready to pay $3.8 billion for the German lighting group's shares, a 10% premium over what finance investors Bain Capital and Carlyle have already offered. Osram, which is grappling with weakness in the automotive industry and a broader economic slowdown, had sparked bidding interest because of its potential as a supplier for connected and autonomous cars.
Osram said on Monday it would consider a takeover by Austrian sensor maker AMS that trumps a competing bid by Bain and Carlyle with a cash offer valuing the German lighting group at 4.3 billion euros ($4.8 billion). AMS said it could create a global heavyweight in sensors and photonics with the acquisition of Osram, a leader in automotive lighting technology whose share price has been depressed by profit warnings, doubts over its strategy and a weak car market. Osram called AMS's financing plan "binding and viable".
German lighting group Osram Licht continues to struggle with a weak automotive industry and "economic turbulences" as the Munich-based company posted a quarterly net loss on Wednesday. "We are not seeing any significant short-term recovery of the markets," CEO Olaf Berlien said in a statement https://www.osram-group.com/en/media/press-releases/pr-2019/31-07-2019. Osram's revenues in the fiscal third quarter came in at 850 million euros ($949 million), down 9.2% year-on-year, while earnings before interest, taxes, depreciation and amortisation (EBITDA) were down 66.2% to 42 million euros.