As a long-term active investor, Allianz Global Investors devotes significant resources to fundamental research and our portfolio managers invest in companies where they see the potential to realise value on behalf of its clients.
As a long-term active investor, Allianz Global Investors devotes significant resources to fundamental research and our portfolio managers invest in companies where they see the potential to realise value on behalf of its clients. AllianzGI engages with investee companies in a constructive manner to achieve the best outcomes.
Since the spin-off of OSRAM Licht AG in 2013, AllianzGI has been a shareholder and today holds over nine per cent of the outstanding shares in the company. AllianzGI holds the stock because its portfolio managers appreciate the intrinsic value of the asset and its future potential.
The offer for OSRAM shares made by Bain and Carlyle implicitly supports AllianzGI’s view that there is upside potential for OSRAM and its technology in the foreseeable future. However, as its largest existing shareholder, AllianzGI has commissioned its own independent fairness opinion pursuant to IDW S81 standard on the evaluation of the company, the results of which support AllianzGI’s view that OSRAM shares are worth more than the EUR 35 per share currently on offer.
Based on available information, AllianzGI is minded not to accept the offer despite it being recommended to shareholders by the Board of Management and Supervisory Board of OSRAM Licht AG.
Having sought to engage with OSRAM’s Board of Management and Supervisory Board over the past year, AllianzGI finds it regrettable that they appear to have insufficient confidence in the business they are managing that they have chosen instead to sell out at what looks to be a knock-down price.
1) IDW S8: a standard by Institut der Wirtschaftsprüfer in Deutschland e.V. (Institute of Public Auditors in Germany) defining principles for the preparation of fairness opinions.
About Allianz Global Investors
Allianz Global Investors is a leading active asset manager with over 790 investment professionals in 25 offices worldwide and managing more than EUR 540 billion in assets for individuals, families and institutions*.
Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.
Active is: Allianz Global Investors
*Data as at 30 June 2019.
This document is for information purposes only. Allianz Global Investors (hereinafter “AllianzGI”) is not acting as an investment adviser or fiduciary. The material does not constitute a personal recommendation and does not take into account the individual financial circumstances or objectives of any investor. It is not intended to be and should not be construed as a recommendation, offer or solicitation to acquire, or dispose of, any of the financial instruments and/or securities mentioned in this document and will not form the basis or a part of any contract or commitment whatsoever.
Any securities and other financial instruments mentioned in the material may not be suitable for all purposes or for all investors. Accordingly, recipients must independently determine, in consultation with their own advisers, whether this material is suitable for their purposes.
Unless otherwise specified, the content of the material is based on interpretations, estimates, opinions and other types of information. Such statements are not historical facts and therefore speak only as of the date they are made. AllianzGI undertakes no obligation to update these statements in light of new information or future events.
Prices and availability of financial instruments are subject to change without notice and investment transactions can lead to losses. Past performance is not a guarantee or reliable indicator of future results. By purchasing securities or financial instruments, you may incur a loss or a loss in excess of the principal as a result of fluctuations in market prices or other financial indices.
The price, value of and income from the financial instrument mentioned in the material can fall as well as rise. The value of the financial instrument is affected by changes in spot or forward interest and exchange rates, economic indicators, the financial standing of the issuer, that may have a positive or adverse effect on the income from or price of the financial instrument. For a more detailed discussion of the risks of investing in the financial instrument mentioned in the material, please refer to https://www.allianzgi.com/en/terms-of-use.
Not all products or transactions will fulfil your requirements. You should be aware that any product or transaction which you enter into with AllianzGI is, in the absence of any written agreement to the contrary, on the basis that you are able to make your own independent assessment and decision as to your requirements and whether that product or transaction fulfils those requirements. Your decision will be based on your own knowledge and experience and any professional advice which you may have sought in relation to the financial, legal, regulatory, tax or accounting aspects of the proposed product or transaction. AllianzGI, its directors, officers and employees accept no responsibility or liability for any loss (whether direct, indirect, consequential, loss of profit or damages) howsoever caused or howsoever arising, in relation to this presentation or any subsequent product or transaction entered into.
Reliance is Recipient’s own Responsibility
AllianzGI exercises reasonable care in preparing the material (and in confirming that where any information or opinion in the material is from or based on a third party source, that the source is reputable). Recipients must independently determine, in consultation with their own advisers, whether the material is appropriate for their purposes. AllianzGI accepts no responsibility and no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of the source of information used in the creation of the material, or the reasonableness of any projections, targets, estimates, or forecasts, nor as to whether any projections, targets, estimates, forecasts or payments are achievable or will occur. Where reference is made in the material to an unaffiliated reference asset or index, AllianzGI has not performed any independent review or due diligence of publicly available information. The opinions and estimates contained in the material reflect the current judgement of the author(s) on the date of this document and are subject to change without notice.
To the fullest extent permitted by law, AllianzGI accept no responsibility for and shall have no liability for any loss (including without limitation direct, indirect, consequential and loss of profit), damages, or for any liability to a third party however arising in relation to the material (including without limitation in relation to any projection, analysis, assumption and opinion in the material).
Changes and Updates of Recommendation
Recommendations made by AllianzGI for its products stay unchanged over the time. Updates may be made without prior notice.
Valuation and Methodology
Recommendations may be based on one or more methods of valuations, including observing the market and underlying movements in particular instruments or issuers. This analysis will take into account key criteria such as market liquidity of the financial instrument or issuer at the time of production of the Material.
Conflicts of Interest
Recommendations should not necessarily be considered to be either objective or unbiased. AllianzGI may engage in transactions in a manner inconsistent with individual recommendations. The issuer of the funds named in the material, its employees as well as any further entities and its employees, including persons involved in the preparation or issuance of the information contained in the material are members/employees of AllianzGI and its affiliates. Accordingly, information included in the material or information referred to in the material but not explicitly included in it is not independent from the proprietary interests of AllianzGI and its affiliates, which may conflict with your interests.
Management of Conflicts of Interests
AllianzGI has systems and controls for the identification, avoidance, management and disclosure, as appropriate, of conflicts of interests that may arise in the preparation or provision of investment recommendations. The types of conflicts considered could include conflicts between AllianzGI activities, between AllianzGI clients, AllianzGI own interests and the personal interests of AllianzGI officers and employees. AllianzGI policies, procedures and controls in this regard include for example:
Internal policies, procedures, guidance and regular training on the identification of possible conflicts of interest as and when they arise;
Escalation procedures for ensuring that identified conflicts of interest are considered at the appropriate level within the institution;
Maintenance of robust information barriers between different parts of the institution to restrict the flow of inside information so as to avoid inadvertent spread or mis-use;
Monitoring of potential conflicts arising out of the publication of investment recommendations before, during and after transactions;
Restrictions on personal account dealing and procedures and controls relating to wall crossing.
Disclosures of potential conflicts of interest relating to AllianzGI, its affiliates, subsidiaries and its relevant employees with respect to the issuers, financial instruments and/or securities forming the subject of this document valid as of the end of the month prior to publication of this document can be viewed onsite at the address listed below.
AllianzGI currently manages a net long position of 9.69% of the total issued share capital of the issuer.
Analysts and/or employees responsible for the provision of the recommendation may be paid in part by reference to the profitability of AllianzGI which includes asset management, sales and trading revenues. Remuneration of analysts and/or employees is not dependent on individual transactions effected by AllianzGI.
This release is distributed by:
Allianz Global Investors GmbH
Bockenheimer Landstraße 42-44
60323 Frankfurt am Main
Registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de).