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ams bids EUR 4.3bn for Osram
Posted on Monday, 12 August 2019 11:08
A bidding war for Osram Licht is heating up as ams has submitted a fully financed EUR 4.30 billion proposal to create a global leader in sensor equipment and photonics with about EUR 5.00 billion of revenue. The enterprise value implies a multiple of 14.6x to September 2019 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and 7.3x Sep-2019 adjusted EBITDA after run-rate cost and revenue savings. At EUR 38.50 apiece reflects a premium of 33.0 per cent to Osram’s undisturbed share price of EUR 28.92 and is 10.0 per cent more than the competing offer of EUR 35.00 from Bain and Carlyle. The proposal includes an EUR 4.20 billion committed bridge facility, which will be refinanced via a debt issuance of EUR 2.70 billion. It will also hold a fully underwritten EUR 1.50 billion rights issue that results in a multiple of 4.3x proforma December 2019 net debt to EBITDA. ams noted it is readying to launch the takeover by 15th August once Osram waives a standstill agreement entered into on 4th June as a requirement to gaining access to due diligence, This process was withdrawn when Bain and Carlyle made their rival offer on 5th July. AMS, which specialises in semiconductor-based products for high-tech applications. said the deal accelerates its ability to win new breakthrough optical products while expediting the diversification of its revenue mix. The acquisition also boosts the group’s manufacturing footprint with clear scale and cost advantages and leverages the go-to-market strengths of the two companies. When combined, ams said it will be a global leader in sensors and photonics for both mobile and consumer, as well as automotive, industrial and medical applications. It will have proforma leverage of 4.3x 2019 expected (E) EBITDA and 3.2x 2019 E EBITDA, including cost-savings, and intends to reduce this to roughly 2.0x by 2021. © Zephus Ltd