Somany’s family stake will be cut to 30%
Turkish glass major Trakya Cam Sanayi AS will acquire 45 per cent stake in the Kolkata-headquartered HNG Group-controlled HNG Float Glass Ltd (HNGFL) for an undisclosed sum.
According to a stock market notification by Hindusthan National Glass & Industries Ltd (HNGIL), the group is entering a joint venture agreement with Trakya for the HNG Float.
HNGIL and, its promoters – Somany family - currently hold 87.6 per cent in the float glass subsidiary. IFC, Washington, holds the residual 12.4 per cent stake in HNG Float.
After entering the joint venture, Trakya will hold 45 per cent stake in HNGFL.
The existing promoters of the Indian float glass maker will hold an identical 45 per cent. The residual 10 per cent will be held by IFC.
The stock holding of HNGIL will be diluted sharply from 47.4 per cent to approximately 15 per cent.
Accordingly, Somany family’s stake in HNGFL will be reduced from 40.2 per cent to approximately 30 per cent.
Trakya Cam reportedly ranks among the top six flat glass companies in the world and top four companies in Europe by its production capacity in seven float lines.
The company grossed $751 million (over Rs 4100 crore at current exchange) net sales with its 2.768 employees in 2011.
According to the company Web site, in a strategic step in 2009, Trakya Cam decided to jointly develop its flat glass activities with Saint-Gobain.
While HNG authorities were not available for comments on the joint venture with Trakya, company officials previously expressed intent to set up a 1,000-tonne a day furnace in its Gujarat facility at approximately Rs 850 crore so as to step up the float glass manufacturing capacity from the existing 600 tonnes a day.
Meanwhile, in December 2012, the group flagship HNGIL announced a plan to raise Rs 220 crore through preferential allotment of shares.
It is not known though, if the company will stick to the plan following the joint venture agreement for float glass subsidiary.
HNGIL, the largest maker of container glass in India, posted a turnover of over Rs 2,000 crore in the last fiscal.
The company reported a loss of nearly Rs 28.5 crore for the quarter ending September 30, 2012.
The loss was attributed to high finance cost and a decline in sales.
HNG stock closed at Rs 203 up by 0.12 per cent on the BSE on Friday.