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Austria’s AMS aims for domination agreement with Osram – Source Reuters Tech News

FILE PHOTO: The logo of German lighting manufacturer Osram is illuminated at the company’s headquarters in Munich, Germany, September 16, 2019. REUTERS/Andreas Gebert/File Photo

VIENNA (Reuters) – Austrian sensor specialist AMS (AMS.S) (AMS.VI) made clear on Monday that it aims to secure a so-called domination agreement with Osram (OSRn.DE) to allow it to use the lighting group’s cash flow to pay back debt.

AMS, best known for supplying Apple’s (AAPL.O) iPhones with facial recognition technology, wants to form a global player in sensors and lights with its takeover of the leading manufacturer of car headlamps.

Having secured nearly 60% of Osram’s shares in December, taking on debt of 4.4 billion euros ($4.8 billion) to finance the deal, AMS gained shareholder approval for a 1.7 billion euro capital increase to help to fund the acquisition of the much bigger German group.

A domination and profit and loss transfer agreement (DPLTA) would give AMS full say over Osram’s…

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Source Reuters Tech News

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