Bain, Carlyle’s €3.4bn Osram bid rejected by top investor

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Bain Capital and Carlyle’s €3.4bn takeover offer for German lighting business Osram has been rejected by its biggest shareholder, Allianz Global Investors.

Allianz hold a nine per cent stake in the business and has said Osram’s shares are worth more than what had been offered, despite the deal being recommended by the company’s boards.

“Having sought to engage with Osram’s board of management and supervisory board over the past year, AllianzGI finds it regrettable that they appear to have insufficient confidence in the business they are managing that they have chosen instead to sell out at what looks to be a knock-down price,” the firm said in a statement.

The PE buyers offered shareholders €35 per share of the company, which is significantly lower than then €79.58 the shares were priced at in January 2018, according to a Reuters report.

Osram specialises in infrared and laser lighting as well as other semiconductor-based technologies. The company had focused on lighting bulbs, but of late expanded into more specialist areas, making products for purposes such as virtual reality and autonomous driving, as well smartphones and smart lighting.

Osram generated more than €3.8bn of revenue at end of the 2018 fiscal year and has around 26,200 employees worldwide.

The firm was previously a bulb manufacturing unit of tech major Siemens, before it was spun off in 2013.

Allianz has been a shareholder in the business since the spin off and said it remains invested because its portfolio managers appreciate the intrinsic value of the asset and its potential.

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