Saitama Rakuten International Comments on Osram €4.3 Billion Euro Takeover Bid From AMS
Financial analysts from Saitama Rakuten International commented on Osram Licht AG, a multinational lighting manufacturer in Germany who have agreed a €4.3 Billion takeover bid from AMS AG, an Austrian company known for their designs and manufactures of sensors.
AMS had beaten competitors off in a bidding war which began in July, after it launched its €38.50 euro per share offer to Osram beating a rival offer from a private equity investor by ten percent. The deal was quoted economically attractive to its board of advisors and accepted the deal.
Saitama Rakuten International analyst highlighted that AMS was best known for supplying Apple Inc. with sensors for its latest iPhone edition. The company has now increased its focus to broaden its horizons by supplying the automotive industry and manufacturers with sensors and lighting solutions for anticipated self-driving vehicles.
“AMS has taken on billions of debt to finance this key takeover, with the company depending on a group of selected key customers, which translates into higher risk. The biggest threat is if its key client base switches to other technological solutions provider or even places smaller orders,” commented Matthew Barrett, Director of Corporate Equities at Saitama Rakuten International.
AMS has stated its acquisition was successful and also reinforced with positive feedback during its global investor roadshow. The company has noted that it will hold a general meeting next month to approve a €1.5 billion equity issuance to refinance the €4.3 billion acquisition.
“Osram shareholders that may still need convincing ranges from Allianz Global Investors who hold 9.4 percent of its stock, UBS with a 6.2 percent holding and Barclays who have a 5.5 percent holding in Osram according to its latest filings,” added Nicholas Cooke, Head of Corporate Trading at Saitama Rakuten International.
Osram’s advisory board division who recommended the takeover bid was, however, not all unanimous; major employee sentiment feared that the company could in turn be broken up, leading to job losses and facility closures in Germany.
Saitama Rakuten International is a comprehensive wealth management company based in Osaka, with assets of more than US$7.7 billion. The company provides a wide array of retail products and services including independent estate and wealth planning, advisory & discretionary portfolio management services and stockbroker solutions.