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:

The CEO of Osram will be Wolfgang Dehen.

Popular posts from this blog

Keeping an Eye On HSBC in February

DXTRQ: Amended Plan of Liquidation and Stipulation Filed