Nippon Sheet Glass announces the sale of Flat Glass Business in Australasia
Nippon Sheet Glass Co., Ltd. (“the Company”) announces that today its extraordinary Board meeting officially resolved the sale of Flat Glass Business in Australasia.
Upon this decision, the Company enters into a sale agreement of all of the Group’s Flat Glass operations in Australia and New Zealand, known as Pilkington (Australia) Limited and Pilkington (New Zealand) Limited, wholly owned by Pilkington Group Limited, to CSR Limited as below.
The Company received a number of competing offers to purchase all of the Group’s Flat Glass operations in Australia and New Zealand and, in the accounts for FY2007, the business has been classified as “held for sale” in the income statement as well as balance sheet. Following a process of due diligence and an assessment of the competing bids, the Company decided to accept the offer of CSR Limited. The Company believes that the transaction offers better value to the Company’s shareholders than would be realized by retaining these operations within the Company.
It is currently calculated how much gain from the sale of the shares will be realized upon the disposal of its shareholding in the business, which will be announced as soon as it is fixed.
(a) The outline of the business:
(i) Scope of business:
All of the Company's Building Products and Automotive glass operations in Australia and New Zealand
(ii) Operating results and Financial positions (FY07):
Sales : AUD 360 Mil
Assets : AUD 660 Mil
Liabilities : AUD 99 Mil
New Zealand business
Sales : NZD 60 Mil
Assets : NZD 82 Mil
Liabilities : NZD 7 Mil
(iii) Sale price and pricing method:
Approximately JPY 70 Bil, after the process of competitive auction by the potential buyers.
*) Notes: The figure for results and financials are based on the management accounts of the local entity.
(b) Time frame of the transfer:
29th June 2007 execution of sale agreement, with closing on the same date
(c) Outline of the buyer:
(i) Legal name : CSR Limited
(ii) Principal address : Chatswood, NSW, Australia
(iii) Name of representative : Ian Blackburne, Chairman
(iv) Paid-in capital : AUD559.9 Mil (Approximately JPY 56.0 Bil )
(v) Status of shares : Public company listed on the Australian Stock Exchange with a market capitalisation of around A$3 billion.
(vi) Outline of business : CSR is a leading diversified manufacturing company with operations throughout Australia as well as in Asia and New Zealand, with major operations in Building Products, sugar and aluminium.