OSRAM control will be handed over to ams on November 3

Recently, the merger process between OSRAM and ams has taken another step forward. On September 22, OSRAM announced that it reached an agreement with ams regarding the transfer of control and profit/loss. To this end, the OSRAM Management Board and Supervisory Board will pass resolutions to sign an agreement with ams, and a Special General Meeting of Shareholders will be convened on November 3, 2020, at which a resolution will be submitted to approve OSRAM's accession to the agreement.

According to the agreement, Osram's minority shareholders will receive an annual compensation payment (ACP) of €2.57 per share. If Osram shareholders wish to sell their shares, they will receive a tender offer of €44.65.

Osram emphasizes that thanks to an effective transformation strategy, the company has achieved a valuation of €44.65 per share. Currently, 70% of Osram's revenue comes from the advanced semiconductor industry, replacing traditional products that previously contributed the most to turnover.

In reference to the transformation, Osram also announced on the 23rd that it is planning to split its automotive lighting joint venture, Osram Continental, continuing its transition to photonics and optical technology fields. In the future, ams will be responsible for the mobile business, while Osram will handle the automotive business.

Looking ahead to the fiscal year 2021, despite the ongoing spread of the pandemic, OSRAM is optimistic that market conditions will recover significantly. Based on signs of a strong market recovery, OSRAM raised its earnings guidance on the 21st. For the fiscal year 2020, revenue is expected to decline by approximately 14% on a comparable basis, compared to the previous estimate of a 15%-19% decline. Adjusted EBITDA margin is expected to be around 8%, compared to the previous estimated range of 3%-6%. Free cash flow is expected to remain flat, whereas previously it was forecast to be negative.

Source: China Association of Lighting Industry（中国照明电器协会）