Siemen's Spins Off Osram

Siemen's is spinning off their lighting division, Osram, on July 5th, with the new Osram shares trading on the Frankfurt and Munich Stock Exchange and Siemen's trading ex-spin off, July 8th.

Osram will be the largest pure play lighting company in the world.

For every 10 shares of Siemen's owned, 1 share of Osram will be received.

Siemen's shareholders will end up owning 80.5% of Osram, while Siemen's will continue to own the remaining 19.5%

Holders of Siemen's ADR will not receive shares in the new company. Rather these shares will be sold immediately, and the proceeds will go to the ADR holders.

The press has created a negative aura for Osram, and there is an anticipation that once shares begin to trade, they will dive.  Reasons include forced selling of the ADRs, forced institutional selling,  as well as more of the customary negative spin off rhetoric.

It is also expected that the ex spin-off Siemen's will jump, because of the institutional buyers who did not want to be involved with the spin off.

According to the prospectus, pro forma statements give Osram equity of around 2.1B euros.  Sieman's values Osram at 3.2B euros.

Here is the prospetus:  http://www.osram-licht.com/uploads/tx_templavoila/Prospekt_E_final_Internet_01.pdf

The CEO of Osram will be Wolfgang Dehen.

Popular posts from this blog

Keeping an Eye On HSBC in February

Image
Although I usually stick to extremely small niches for ideas, what's going on with this company is too fascinating not to comment on. HSBC has been in the crossfires of the Hong Kong protests lately.  They're expected to release 2019 annual results sometime around Feb 18th, so perhaps now is a prudent time to re-examine the totality of developments that have been going on at the 5th largest bank in the world. It's no secret that HSBC has a massive exposure to mainland China and Hong Kong.  In my opinion, the writer behind Strategic Macro does a wonderful job of describing it  here.   I suggest everyone to read through it.  If Strategic Micro doesn't provide a follow up to his original post once annual results get released, perhaps I will. Right now though the only update I'll add to the topics discussed in that post, is that according to Centa-City Leading Index, it appears Hong Kong secondary private residential property prices have peaked and are on thei...
Read more

DXTRQ: Amended Plan of Liquidation and Stipulation Filed

Today an amended Plan of Liquidation along with a Stipulation regarding the settlement between the Warrant Holders was filed. The settlement includes among other things: The SHMF Claim shall be reduced, and allowed as a general unsecured claim in the total amount of $283,333.33 (the “Allowed SHMF Claim”), with prejudice to SHMF’s ability to amend the Allowed SHMF Claim or file further claims against the Debtor or its estate. The SVWMF Claim shall be reduced, and allowed as a general unsecured claim in the total amount of $141,666.67 (the “Allowed SVWMF Claim,” collectively with the Allowed SHMF Claims as, the “Allowed Sabby Entities Claims”), with prejudice to SVWMF’s ability to amend the Allowed SVWMF Claim or file further claims against the Debtor or its estate.  The Alpha Claim shall be reduced, and allowed as a general unsecured claim in the total amount of $425,000.00 (the “Allowed Alpha Claim”), with prejudice to Alpha’s ability to amend the Allowed Alpha Clai...
Read more