The Managing and Supervisory Boards of OSRAM Licht AG have agreed to support a takeover offer for all the shares of Osram from a consortium of Bain Capital and The Carlyle Group.
“Bain and Carlyle are the right partners for Osram at the right time”, said Olaf Berlien, CEO of Osram. “They support our strategy and facilitate growth. Both are committed to our employees and offer shareholders an attractive premium.”
The offer values Osram shares at €35, a premium of roughly 21 percent above the last closing price and 22.6 percent on the volume-weighted average price of Osram shares in the past three months. The Bain/Carlyle interest has been public knowledge for some time, which would have had an effect on Osram’s share price; the offer price is still 15 percent down on the share’s peak this year in February, following a string of profit warnings.
Bain and Carlyle have required at least 70 percent of shareholders to accept this deal and have given them until the beginning of September.
The offer gives Osram an equity value of €3.4 billion and an enterprise value of roughly €4 billion. Osram was spun off from Siemens’ lightbulb division in 2013, since when it has refocussed on high-tech photonics; Osram management sees the buyout as providing “an ownership structure with which the company will be able to continue its necessary transformation even more consequently in these economically and geopolitically uncertain times … Both private equity firms have extensive experience in supporting companies through transformation processes, have access to an international network and have successfully developed several companies in the past”.
Bain and Carlyle have certainly committed to support the current growth path with its focus on optical semiconductors, the automotive sector and digital applications.