ams says it has shortlisted potential buyers for Osram digital business

Recently, Alexander Everke, CEO of sensor supplier ams, said that a list of potential buyers has been drawn up for OSRAM's digital business, and if it can successfully acquire OSRAM, the business will be smoothly divested.

ams' vision is to become a more influential automotive lighting supplier, providing more heavyweight sensor solutions and photonics technology, which is why ams intends to acquire OSRAM and divest its non-automotive business.

"We do have a list of potential strategic buyers for OSRAM's digital business," the CEO said in an interview with German weekly last Thursday.

However, ams "has not yet had any negotiations with potential buyers," Everke said. And added that there is definitely no Chinese-related capital or enterprise. "I can rule this out 100%."

​​OSRAM's digital division includes companies focusing on electronic components and lighting systems, as well as lighting management software.

In 2017, OSRAM acquired Boston-based Digital Lumens, which focuses on energy-saving lighting and sensor- and software-based services such as asset tracking. The division also provides stage and studio lighting, curtain wall lighting, and indoor plant cultivation lighting.

Osram said the unit's third-quarter revenue fell 12.5% ​​to 227 million euros ($250 million).

Everke said AMS and Osram will jointly decide on future investments based on Osram's product portfolio.

He also said that once the merger is completed, Osram's optoelectronic semiconductor unit in Kulim, Malaysia, will be integrated with ams' production base there.

"We expect to lay off employees after the factory integration," Everke said. "At the same time, other parts of Asia will also be evaluated for integration optimization, but there are no plans for layoffs in Germany."

Osram's optoelectronic semiconductor unit has about 1,500 employees in Kulim, while Osram as a whole has more than 11,000 employees in Asia.

Currently, Osram has about 24,000 employees and more than 20 production facilities in more than 100 countries and regions around the world, of which about 6,000 people work in Germany.

AMS Semiconductor's offer for Osram is 38.50 euros per share, 10% higher than the previous offer from Bain Capital and Carlyle's privatization offer.

The three parties are still in the negotiation stage. No matter which plan is adopted, 70% of OSRAM investors need to be convinced to successfully complete the merger and acquisition.