|Good to know that there is some interest in private equity for a deal in lighting. |
Bain Said to Explore Takeover Bid for Germany's Osram Licht
By Ruth David , Sarah Syed , and Eyk Henning
November 27, 2018, 3:28 AM CST Updated on November 27, 2018, 4:05 AM CST
Shares of Osram soar, taking market value to 3.9 billion euros
Other private equity firms are also eyeing the ex-Siemens unit
Bain Capital is exploring a takeover bid for German lighting-products manufacturer Osram Licht AG, which has a market value of almost 3.9 billion euros ($4.4 billion), according to people with knowledge of the matter.
The private equity firm is working with financial advisers in assessing the business, the people said, asking not to be identified because the deliberations are private. Other potential suitors including rival buyout firms are also eyeing the former Siemens AG unit, though the interest may not ultimately result in a deal, they said. Osram shares soared by the most in more than five years.
Representatives for Osram and Bain declined to comment.
Shares of the German manufacturer had plummeted more than 50 percent this year as a slowdown in the lighting business and dampened demand for headlights from global automakers triggered two profit warnings and a muted outlook for the next financial year. The company has signaled its interest in selling two underperforming units -- lighting fixtures and U.S. services -- as it seeks to reorganize operations and boost earnings.
Siemens exited the business a year ago, selling its remaining 17 percent stake in Osram for about 1.2 billion euros.
Osram shares climbed as much as 19.6 percent -- the most since July 2013 -- before trading up 18 percent to 39.82 euros as of 10:56 a.m. in Frankfurt trading.
— With assistance by Dinesh Nair