Austrian chipmaker AMS bids for Germany’s Osram Licht

Austrian chipmaker AMS has submitted a €4.1 billion takeover bid for Germany’s Osram Licht, as it looks to break up an already agreed deal between the lighting company and private equity buyers. AMS, which supplies sensors used in Apple iPhones, said yesterday hat it had tabled a fully financed offer that values shares in Osram at €38.50 per share. The Austrian group’s bid is 10 per cent higher than the €35-per-share deal Osram agreed in July with Carlyle Group and Bain Capital… Osram, which was spun out of Siemens six years ago, makes half of its revenue from the automotive sector and would help AMS reduce its reliance on Apple, which is its major source of sales. A takeover by AMS would create a global leader in sensor solutions and photonics, with annual revenues of about €5 billion… AMS said it had secured a bridge loan of €4.2 billion from HSBC and UBS, which it would seek to refinance through a mixture of debt and equity… AMS said it would target cost savings of €240 million and that it believed it would benefit from cross-selling products if it completed the deal… The Austrian group said it would look to sell Osram’s digital division, which it described as “non- core” and that it would look to phase out a consumer lighting division.
Arash Massoudi