AMS Osram rises after restructuring plans for microLED project unit
** Shares in AMS Osram AMS.S jump around 6% as the Austrian sensor maker plans to restructure its microLED project unit in Malaysia and Germany, after posting Q1 results
** The exit from microLED technology will cost the company 700 million euros ($750.96 million), at the lower end of the previously indicated range of 600 to 900 million euro
** "The impairment from the micro-LED cancellation is lower and exit will improve adj. EBIT significantly due to lower costs," Vontobel says
** AMS said as well that it is seeking transfer of the eight-inch silicon wafers factory in Kulim, Malaysia, to a new lessee with high priority, which it expects will cut its long-term debt by around 400 million euros
** The movesare expected to positively impact cash flow and adj. EBIT by around 100 million euros in 2025, compared to the continuation of the project, Jefferies says
** Up to the previous session's close, shares were down 50% YTD
($1 = 0.9321 euros)
Reporting by Ozan Ergenay and Nathan Vifflin
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