Osram announced that it would accept the public takeover offer from Bain Capital and the Carlyle Group

On last July 4th, Osram said that its Managing Board and Supervisory Board decided to support the legally binding transaction offer for the public takeover  of Osram by Bain Capital and the Carlyle Group. Osram and the consortium have also reached an investor agreement that covers comprehensive commitments.

According to the offer, these two private equity firms will acquire Osram’s shares with the price of 35 euros per share in cash, which is roughly 21 percent above the last closing price of Osram shares before Osram accepted the offer. The offer values Osram at an equity value of EUR 3.4 billion (US$3.8 billion) and an enterprise value of roughly EUR 4 billion (US$4.5 billion).

Bain and Carlyle have announced a minimum acceptance threshold of 70 percent, without covering the shares owned by Osram itself. The offer period is expected to end at the beginning of September. Until now, both governance bodies think that shareholders should accept the offer. The Managing Board plans to sell its own Osram shares to the bidders as part of the takeover.

Based on the offer, Osram will go on under the existing name after the takeover. The corporate headquarters will still remain in Munich,Germany, and the rights to all patents will remain with Osram. Bain, Carlyle and Osram also agreed in the investor agreement that Osram operates in a challenging and changing market environment that requires flexible action.

The investors agreed to support all ongoing projects of Osram including possible acquisitions as well as investments in new LED developments. Bain and Carlyle also confirm that existing labor agreements, collective bargaining agreements and existing pension plans will still be effective.