Osram supports the takeover of AMS as the 2019 loss is due to automatic deterioration

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FRANKFURT (Reuters) – Osram ( tOSRn.DE) He urged shareholders to offer a $ 5 billion takeover refund from AMS of Austria (AMS.VIand said that it would reduce costs and would not pay a dividend because he had posted a loss for the fiscal year ending September, due to a downturn in the auto industry.

PHOTO FILE: The German Osram lighting manufacturer's logo is illuminated at the company's headquarters in Munich, Germany, 16 September, 2019. The project was constructed with long exposure. REUTERS / Andreas Gebert / File Photo

“A tender price of € 41 per share in cash is an appropriate valuation of the company from a board point of view,” the company said in a statement.

Shareholders have until 5 December 2019 to accept the offer, Osram said.

In the fiscal year ending September, Osram presented a net net loss of 343 million euro ($ 377.99 million), from a profit of 188 million euro in the previous year.

“Osram is not expecting global car recovery in the short term,” the company said, exposing plans to cut € 220 million in costs between 2017 and 2021.

As a result of the downturn, Osram has weakened 171 million euro in its joint venture Osram Continent. Osram stated that his medium-term goals would be achieved two years later.

Osram said that job losses, efficiency measures and takeover costs resulted in 131 million euro charges.

More job cuts are planned, Osram said, adding that employees at German locations are protected from mergers related to the end of 2022.

AMS renewed its takeover attempt on Osram earlier this month, hoping that its latest offer would convince investors with a lower acceptance and concession rate for Germany's lighting management group and unions.

($ 1 = 0.9074 euro)

Reporting by Edward Taylor, edited by Riham Alkousaa and Michelle Martin

Our Standards:The principles of Thomson Reuters Trust.

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