...- Austria-based sensor solutions provider ams AG plans to increase its stake in German lighting manufacturer Osram Licht AG to 68.4% from 23.4% in July 2020 for 1.86 billion. ams will finance the transaction, refinance existing debt at OSRAM, and pay for related-transaction fees with a 1.65 billion rights issue and a proposed 1.0 billion senior unsecured notes issuance. - ams has also announced its intention to enter into a domination and profit-and-loss transfer agreement with Osram, which we expect by year-end 2020 or the beginning of 2021, to reinforce its control, speed up the integration and turnaround of Osram, and potentially increase its stake to up to 100% over time. . - The enlarged ams group will become the No. 3 sensor solutions and photonics provider, with increasing diversification and improving profitability. However, the group will remain exposed to customer concentration, the volatile consumer segment, and the auto and industrial end markets that are more sensitive to the...
