Shares of Austria-based ams OSRAM (VIE:AMS) climbed 1.25% to CHF 3.23, peaking at a 5% increase today, in response to the company's financial restructuring strategy that involved the sale of two of its Asian sites.
The new Kulim facility in Malaysia was sold via a sale-and-leaseback agreement to Malaysian investors Permodalan Nasional Berhad, Employees' Provident Fund and Retirement Fund. This transaction is expected to generate around €400 million.
In addition to the Kulim facility deal, ams OSRAM also concluded the sale of another phased-out manufacturing site located in Asia. The disposal of this site resulted in proceeds in the mid-double-digit million euros range.
These strategic moves form part of ams OSRAM's plan to bolster its balance sheet and manage high interest rates. By divesting these assets, the company aims to streamline its operations and improve its financial standing, as indicated by the positive response from the market today.
InvestingPro Insights
According to real-time data from InvestingPro, ams OSRAM's market cap stands at $14.67 million, with a P/E ratio of 23.9 as of Q2 2023. The company's revenue for the last twelve months as of Q2 2023 is $20.36 million, reflecting a growth of 9.05%. The company's price at the previous close was $2.36.
InvestingPro Tips suggest that ams OSRAM operates with a significant debt burden, which aligns with the company's recent strategic moves to improve its financial standing. Furthermore, the company's stock is currently in oversold territory, indicating a potential buying opportunity.
There are 16 more tips available for ams OSRAM on InvestingPro, providing investors with a comprehensive understanding of the company's current financial status and market performance.
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