AMS’ new offer for Osram was approved and published last week with an offer price of EUR 41 per share (US$ 45) and a minimum acceptance threshold of 55%. Osram announced today (November 12) that it has concluded a comprehensive business combination agreement with AMS and recommends its shareholders accept the current takeover offer.

With the new offer, AMS lowered the minimum acceptance rate to 55%, providing “more certainty that the offer succeeds,” according to AMS. Currently AMS is the largest shareholder of Osram with its 19.99% of shares.

In the beginning of October when AMS failed the first takeover, Osram was still looking forwards to new bidding offer from Advent and Bain Capital who has indicated to make a more attractive offer to the German company. However, they then abstained from bidding.
Osram now turns to AMS and noted that the two companies have agreed on important points for the integration of Osram into the joint group. The most critical point was that the employees of Osram are protected from merger-related layoffs until the end of 2022 at German locations, according to Olaf Berlien, CEO of Osram, who opposed AMS’s offer previously.
The German company is hoping for a moderate change in revenue in the coming fiscal year 2020 as it has gone through a tough year in 2019. Osram noted that after concluding the business combination agreement, its Supervisory Board and Executive Board recommend the present takeover offer of AMS to the Osram shareholders. They have time until December 5, 2019, to accept the offer.