Austrian sensor maker AMS secures 59.9% Osram stake
03 Jan 2020
Austrian sensor maker AMS has managed to secure a 59.9 per cent stake in German lighting group Osram, surpassing a 55 per cent minimum threshold but falling short of a 75 per cent hurdle needed to tap Osram’s profits.
AMS, a leading worldwide supplier of high performance sensor solutions, said its all-cash takeover offer of German lighting solutions provider Osram Licht AG achieved a final acceptance level of 59.9 per cent by the end of the additional acceptance period.
AMS said the closing of the offer is subject to receipt of regulatory approvals and is expected to occur in the second quarter of 2020.
Hedge funds bought up a substantial Osram stake and refused to tender their shares, speculating instead that AMS will launch another offer at a higher price later.
AMS is planning an extraordinary general meeting (EGM) of its shareholders to resolve a proposal for a rights issue amounting to EUR 1,649 million to partially refinance the acquisition. The EGM is planned to be held on 24 January 2020 and the invitation will be published shortly, the company stated.
During the final two-week extended offer period which ended on 24 December, Osram’s share price was trading above the 41 euros AMS offer price, leading investors sell shares on the open market rather than tendering shares to AMS.
The Austrian company needs at least 75 per cent of Osram’s shares to get access to the German company’s funds to repay the debt incurred to finance the offer, which is worth about 4.6 billion euros ($5.2 billion).
AMS, a global leader in the design and manufacture of advanced sensor solutions, is known for supplying Apple with sensors for iPhones, wants to build a leader in integrated sensors and lights and develop systems for self-driving cars and smartphone applications.