Asahi Glass Co. launched a tender offer on 2 November 2007 for shares of a CRT glass subsidiary in South Korea with the aim of taking the firm off the stock market.
Hankuk Electric Glass Co. operates…
Asahi Glass Co. launched a tender offer on 2 November 2007 for shares of a CRT glass subsidiary in South Korea with the aim of taking the firm off the stock market. Hankuk Electric Glass Co. operates the only remaining plants for Asahi Glass group“s CRT glass business. The market for CRT televisions is declining fast as consumers switch to flat-screen TVs. Asahi Glass plans to spend around JPY 11.7 billion (USD 102.1 million) to buy Hankuk Electric stock held by minority shareholders. Consequently, the firm“s stake in the South Korean unit is expected to rise to 80% from 43% at present. South Korea“s LG Electronics Inc. will likely retain its 20% stake. The tender offer started 2 November 2007and will end 21 November. Asahi Glass is offering KRW 30,000 per share, a premium of about 25.1% over the average price of Hankuk Electric shares in the past two months. Hankuk Electric makes CRT glass in South Korea and China, supplying mainly LG group firms. In 2006, the firm posted an operating loss of about JPY 4 billion on sales of JPY 31 billion.
