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Investing.com -- ams OSRAM stock gained 4% after announcing the sale of its Entertainment & Industry Lamps business to Japan’s Ushio for €114 million, marking the first divestment in the company’s deleveraging strategy.
The transaction, expected to close in the first quarter of 2026, represents the initial step in ams OSRAM’s previously announced plan to generate over €500 million in total proceeds from business divestitures. The Entertainment & Industry Lamps unit generated approximately €170 million in revenue in 2024.
This sale aligns with management’s efforts to strengthen the company’s balance sheet and improve profitability. The company is pursuing additional asset sales, including its Kulim fabrication facility, as part of its broader financial restructuring initiative.
Jefferies analysts commented: "While the starting point is weak especially on the balance sheet, the expected inflow of over €500m from the sale of businesses, the additional sale of the Kulim fab and on-going improvements in the profitability and cash flows of the business are expected to help deleverage the balance sheet and improve confidence.
We expect the stock to further re-rate on the back of this deleveraging, and the on-going upcycle in industrial and automotive semis."
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