Advent and Bain Capital up their offer to acquire Osram
Last July, Bain and Carlyle had offered to acquire the company for the price of 35 euros per share, supporting the strategy of the management in the ongoing transformation of the company as a high-tech photonics company. Then in August, Osram was in negotiation with Austrian sensors manufacturer ams AG to be taken over at 38.50 euros per share.
In its letter to the Managing Board of Osram, the consortium has indicated it may offer a “meaningful” premium over the current offer from ams AG of 38.50 euros per share. The potential bidders have also indicated that they are working on a new financing structure for the possible transaction.
Advent and Bain intend their binding offer to be superior to that of ams AG in terms not only of the offer price but also the strategy and growth prospects for Osram.
In the event of a binding offer, the new consortium has indicated it would be willing to sign an investor agreement similar to that signed by Bain and Carlyle and to support the strategy of the management in the ongoing transformation of the company.
Bain and Carlyle’s existing investor agreement contains, among other things, commitments to protect the workforce and sites. Osram would continue to operate under the existing name after the takeover. The corporate headquarters would remain in Munich, and the rights to all patents would remain with Osram. Existing labour agreements, collective bargaining agreements and similar agreements as well as existing pension plans would remain unchanged. The investors are committed to the cornerstones laid out in the benchmark document “Future Concept Germany”, which was agreed in July 2017 with the trade union IG Metall and the workforce.
If a binding offer is made, Osram will make a timely recommendation to its shareholders, as with the previous offers.
Osram – www.osram.com
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