Ams-Osram, a prominent electronics company based in Austria, has made significant progress in its financial-restructuring plan by selling two sites in Asia for a total of nearly 450 million euros ($475.4 million). This development has resulted in an increase in the company’s shares.
At 0853 GMT, ams-Osram’s shares traded 1.25% higher at CHF3.23, with a maximum increase of 5%.
Sale-and-Leaseback Deal for New Facility in Kulim, Malaysia
Ams-Osram entered into a sale-and-leaseback agreement for its new facility in Kulim, Malaysia. The deal involves three large Malaysian investment companies: Permodalan Nasional Berhad, the Employees’ Provident Fund, and Retirement Fund. The company expects to generate around EUR400 million from this transaction.
Sale of Another Manufacturing Facility in Asia
Additionally, ams-Osram has successfully closed the sale of another manufacturing facility in Asia that has already been phased out. The proceeds from this transaction fall within the mid double digit million-euro range.
Last month, ams-Osram introduced a comprehensive financial plan aimed at strengthening its balance sheet. As part of this plan, the company indicated that it may consider sale-and-leaseback agreements for its corporate assets to minimize borrowing costs in light of high interest rates.