AMS Osram - comment

We exited our convertible bond position in AMS Osram at 95% in July, as we did not believe the Company would pursue a tender for these bonds. Today, the Company has announced a €300m tender, albeit via a Dutch auction, with a price range of 94–96% not par, and an expiry date of January 16, 2026.

When we reviewed the RNS from AMS Osram, we had anticipated an update on the Osram Licht put. However, despite market expectations that a ruling would be delivered in 2025, the Company provided no such update. The decision to allocate €300m of cash to a tender offer indicates that management does not expect a resolution on this matter in the near term.