Renewable Energy

Osram supervisory board to meet to discuss takeover offer -sources

Credit: REUTERS/MICHAELA REHLE

German lighting group Osram's supervisory board is convening an extraordinary meeting on Thursday to discuss a takeover offer from private equity firms Bain and Carlyle, sources close to the matter said.

Adds Osram comment, background

FRANKFURT, July 3 (Reuters) - German lighting group Osram's OSRn.DE supervisory board is convening an extraordinary meeting on Thursday to discuss a takeover offer from private equity firms Bain and Carlyle, sources close to the matter said.

The two investors secured financing in the last few days, one of the sources said, adding that an offer could value the group at about 35 euros ($39.5) a share,but no firm decision had yet been made over a formal offer.

Osram, whose shares rose more than 10% on the news to trade around 32 euros, declined to comment, as did Bain and Carlyle.

The stock has shed over 60% of its value since hitting a high of 79.58 euros in January 2018 and has a market value of around 2.8 billion euros.

Osram, which is grappling with weakness in the automotive industry and a broader economic slowdown, said in February that Bain and Carlyle were looking at whether to jointly bid for up to 100 percent of its shares.

Chief Executive Olaf Berlien, who took over in 2015, has sought to transform Osram from a light bulb maker into a high-tech group that builds chips, provides digital lighting systems and supplies sensors and other components.

But his plan has failed to win over investors and the company has faced headwinds, particularly in its main automotive market where weakness often ripples through semiconductor and component supply chains early in downturns.

After cutting its profit guidance twice last year, Osram said in March it expects full-year revenue to decline between 11% and 14% compared to an earlier forecast for flat to moderate sales growth.

Osram was floated in 2013 by industrial conglomerate Siemens SIEGn.DE, which sold its last shares in late 2017.

The stock has shed over 60% of its value since hitting a high of 79.58 euros in January 2018 and has a market value of around 2.8 billion euros.

($1 = 0.8853 euros)

(Reporting by Arno Schuetze, Alexander Hübner, Kathrin Jones, editing by Thomas Escritt and Elaine Hardcastle)

((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters Messaging: arno.schuetze.reuters.com@reuters.net))

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