AMS Osram - comment

The announcement from AMS Osram was a disappointment.  Not for what it said, (the sale announced in May has closed, with the receipt of €45m) but for what it didn’t say.  AMS Osram have made €300-400m of revenue non-core with the expectation that they could sell these segments.  Apart from the Passive Optical Components business, c. €100m of revenue which has now just been completed, AMS Osram appears more likely to wind down the other segments instead of making cash sales.  The proceeds were never expected to be material, but we are lowering our cash proceeds assumptions by c. €50m.