Harvard Funds took over all seven seats on the board of Czech glassmaker Sklo Union Teplice, on 5 December 1995, while their US partner Stratton Investments has announced a joint purchase of an additi…
Harvard Funds took over all seven seats on the board of Czech glassmaker Sklo Union Teplice, on 5 December 1995, while their US partner Stratton Investments has announced a joint purchase of an additional 10% in the company. Together Stratton and Harvard have increased their stake in Sklo Union, the country“s largest producer of utility glass, from 56.81 to 66.5%. Sklo Union, which enjoys a 5% share of the world market, in turn has stakes in some 15 glassmakers, including GlavUnion, the largest flat-glassmaker in Europe. It holds a 22% stake in Skloexport, which enjoys a significant share of the world market for finished glass products. In addition to its holdings in Sklo Union and Sepap (50.96% combined ownership), Stratton and Harvard together control a 68.99% majority stake in Ceska Namorni Plavba (Czech Ocean Shipping). Mr. Michael Dingman, who specialises in corporate restructuring and was former head of AlliedSignal Inc and is current chairman of Fisher Scientific International, has promised active management in Sklo Union and six other Czech firms he bought in a US$ 140 million October spending spree. Skloexport continues to be the Czech Republic“s largest glassware exporter, with total exports worth Czk 3.55 billion both in 1994 and 1995. The company accounts for 70% of glassware exports – its main export markets in 1994 and 1995 were the UK (12.4% of the total), Japan (10.4%), Germany (9.9%) and Russia (7.6%). The prospects of Czech glass producers abroad are looking a little fragile, however, as more countries are developing their own glassware industries using the latest production machinery, according to Skloexport“s general manager Vladimir Solc. Slovak glass producers LR Crystal and Sklarne Poltar are not worried if Czech-Slovak glass trading company Skloexport is acquired by Michael Dingman“s Stratton Investments, the two companies“ respective chairmen Stanislav Biros and Lubomir Zan said. Sklarne Poltar has already sold its Skloexport stake and is confident it can handle its own export sales, Zan said. The company is using the money raised from the share sale to expand production of moulded leaded glass products by 30%. Crystal, which still owns shares in Skloexport, does not think any changes at the company could threaten its position abroad, Biros said. Crystal is investing Sk 250 million in order to remain competitive.