AMS approaches Osram, values it at €4.3B in total
Lighting systems maker Osram Licht AG said on Monday that the chances of a transaction after a non-binding, preliminary expression of interest by AMS AG of Austria are "rather low." The management agreed on July 4 to be taken private by Carlyle Group LP and Bain Capital LP. The new bid for the Munich-based target entity was initially set at €38.5 per share or 10% more than the existing deal. It translates to €3.74 billion in equity and €4.3 billion in enterprise value, according to available data.
The announcement adds AMS said it may raise a bridge loan of €4.2 billion for the other component of the Stoxx 600 Europe index and refinance it later by raising €1.7 billion in capital. The intention is pending due diligence and success in negotiations. Osram said it would allow due diligence and insisted on "strict compliance of anti-trust requirements in order to possibly remove the substantial uncertainties pertaining to the funding" of a potential acquisition.