Athens, Greece-based Frigoglass SAIC, retains the highest stake in Beta Glass Plc, following its decision to reverse sale of its stake.
Beta Glass is quoted on the Nigerian Stock Exchange (NSE).
Frigoglass had in May 2015 signed agreement to divest its majority equity stake to GZI Mauritius Limited, but the parties failed to see the deal through.
Frigoglass SAIC, in a regulatory filing at the NSE, said it has terminated the agreement with GZI Mauritius Limited on the divestment of its glass business, which includes the operations in Beta Glass Plc, because a condition precedent was not met.
Frigoglass stated that GZI did not secure the necessary level of debt financing for the acquisition while the amended offers made by GZI were declined as not reflecting the full value of the glass business and therefore not being in the best interest of Frigoglass and its stakeholders.
Frigoglass noted that its glass business retains its strong local market position and technical excellence, adding that it believes that the glass business will remain the leading glass packaging manufacturer in Nigeria and is ideally placed to capitalise on the long-term beverage consumption growth in Africa, driven by its customers’ sustained investments and the continent’s attractive growth prospects.
“The glass business continues to perform well and remains a valuable asset for Frigoglass, despite challenging trading conditions in Nigeria. During 2015, the glass business delivered on its business plan and successfully completed a furnace rebuild in Nigeria, enhancing its efficiency and capacity. The Dubai based glass business significantly improved its cost base and, consequently, its operating margin,” Frigoglass stated.
