Ams-Osram, the semiconductor manufacturer, is facing significant financial challenges as it grapples with a €2.03 billion debt. The company's CFO, Rainer Irle, announced on Thursday that the firm plans to raise over €2 billion (€1 = $1.05) through various methods in an attempt to address its financial issues. This news resulted in an 18% drop in share prices to CHF4.24 (CHF 1 = $1.09).
The company's plan includes a €800 million capital increase and issuing €800 million in bonds. Additionally, Ams-Osram is considering divesting some of its semiconductor business assets. This move is expected to generate approximately €300 million via asset sales and lease-back transactions.
Furthermore, the company is contemplating the sale of its non-core passive optical components business. This decision comes amid dwindling smartphone sales and increased competition from larger chip makers, which have been challenging for the company.
The proposed capital increase will be decided upon by shareholders in a meeting scheduled for October 20, 2023. It remains to be seen how these measures will affect the company's long-term financial stability and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.