15 April 1999: Associated Cement Companies (ACC) of India is planning to dilute its role and holding in its joint venture, Floatglass India Ltd., which has accumulated losses of over Rs 200.
A recent…
15 April 1999: Associated Cement Companies (ACC) of India is planning to dilute its role and holding in its joint venture, Floatglass India Ltd., which has accumulated losses of over Rs 200. A recent press report has said that the dilution will take place over a period of time, and that Asahi Glass, its Japanese partner, will infuse fresh funds to recapitalize the company. ACC, which aims to focus on its core business of cement, feels it cannot play a major role in reviving Floatglass, it said. “Floatglass“ well-being requires a long-term financial commitment. The company has to be nourished with fresh funds from time to time. Asahi has the commitment and financial strength and is better suited to support Floatglass,” sources close to ACC said. ACC chairman S Pallonji Mistry had announced last year that it plans to exit non-core areas. ACC, Tata Exports and Telco together hold 27.88% in Floatglass while Asahi holds 49.06%. The remaining equity is with the public. Earlier, Telco and Tata Exports had reportedly proposed to sell their 13% stake in Floatglass to ACC. Floatglass“ accumulated losses as of 31 March 1998, stood at Rs 191.15. Additionally, the losses for the nine-month period ended 31 December 1998 stood at Rs 26.50.