Japan“s Asahi Glass Co. Ltd., the second largest manufacturer of flat glass in the world, is interested in buying its joint-venture firms with Republic Glass Holdings Corp. (RGHC). In a disclosure to…
Japan“s Asahi Glass Co. Ltd., the second largest manufacturer of flat glass in the world, is interested in buying its joint-venture firms with Republic Glass Holdings Corp. (RGHC). In a disclosure to the stock exchange, RGHC vice-president and general manager Florence Wong said Asahi Glass is considering acquiring majority shares of its subsidiaries, Republic Asahi Glass Corp. (RAGC) as well as Republic Asahi Realty Corp. (RARC). Ms. Wong said the Japanese firm is studying its options for the purchase of the shares including tapping nominees to invest in RAGC and RARC. “Discussions are ongoing and in the board meeting held on 27 April, the board authorized and gave full power and authority to company chairman Mr. Geronimo Velasco to negotiate the terms and conditions of such divestment and to submit the results of such negotiations to the board for consideration,” she said. Republic Glass is a listed investment holding firm which manufactures flat glass, clear and tinted float, automotive glass, mirror products and specialty glass. The company tied up with Asahi Glass in 1988 to put up a float glass plant and has emerged as the country“s sole manufacturer and dominant supplier of flat glass. Republic Glass exports to the US, Singapore and Indonesia. For the first nine months of 1999, the company incurred losses of P 54.9 million due to higher costs and lower sales, with Revenues coming mainly from the sale of idle lots. The company also suffered due to the dumping of clear and tinted float glass in the country and has filed a number of antidumping petitions against Siam Guardian Glass Co. Ltd. of Thailand and a Chinese firm. Republic Glass“ wholly owned subsidiary, RAGC, is the biggest producer of flat glass in the country. RARC, on the other hand, is engaged in property development. Republic Glass was planning to develop a 3,000-sq. m. lot in Libis, Quezon City, with a prospective Asian partner based in the Southeast. The project, however, was shelved due to the prevailing slump in the local property business.