Austria’s AMS seeks ‘Domination’ agreement with Osram to finance its debts

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Austria’s AMS seeks ‘Domination’ agreement with Osram to finance its debts

On Monday, the 10th of February 2020, the Premstätten-based Austrian designer and manufacturer of advanced sensor solutions for wide-ranging industries, AMS AG, had elucidated that the Austrian sensor specialist had been brewing off an option to secure a so-called domination agreement with the century-old German lightning manufacturer, Osram Licht AG, which in effect would allow the Austrian sensor maker to capitalize on the Munich-based lightning group’s cash flow to pay off a growing stockpile of debts.

Aside from that, although AMS, the supplier of Apple Inc.’s facial recognition technology sensors, had secured a controlling 60 per cent Osram’s share back in December that added €4.4 billion further in to the Austrian company’s tallies of debts, the Austrian advanced sensor maker could only secure a €1.7 billion capital increase from its stakeholders to finance the deal.

In fact, a DPLTA or domination and profit and loss transfer agreement provides a company with complete control over its merger’s cash flow, nonetheless, in order to secure a domination agreement, the AMS Chief Executive Everke would require approval from 75 per cent stakeholders of Munich-based Osram Licht AG.

Meanwhile, voicing a vociferous tone over clinching a DPLTA or domination agreement over the German lightning company, AMS Chief Executive, Everke said in a statement on Monday (February 10th), “We intend to implement a DPLTA to enable both companies to work together and realize our joint strategic vision of creating a global leader in sensor solutions and photonics in an efficient manner. ”