November 2, 2020
Our Prediction for Tuesday's Big Vote
On Tuesday, November 3, OSRAM will conduct an Extraordinary General Meeting during which shareholders will vote on the motion to grant Austrian sensor maker, ams, domination -- a move that would allow ams and OSRAM to become fully integrated.
In 2019, ams acquired over 50% of OSRAM shares -- enough to give it governing control -- but it hasn't yet reached the 75% ownership stake that would automatically grant ams domination over OSRAM. As two publicly traded European companies, the lack of corporate integration and control hinders the synergies and information-sharing that can occur between the two companies. Granting domination to ams, would allow the two companies to fully integrate.
As an alternate measure to ams' share ownership percentage hitting the 75% mark, OSRAM shareholders can grant domination to ams by conducting a vote on the matter. If 75% of shareholders approve on November 3, then OSRAM will integrate with ams.
On Monday, November 2, OSRAM announced a change to the proposed domination agreement increasing the OSRAM share purchase price by EUR 0.89 -- from EUR 44.65 to EUR 45.54 per OSRAM share. According to Reuters, ams owns 71% of OSRAM. So in order to pass, 4% or more of the remaining 29% shareholders would need to vote in favor of domination. For these reasons, inside.lighting believes that the measure will pass and the domination agreement will soon go into effect.
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