Goldray: interest grows from potential strategic partners

Interest in Canadian architectural glass maker Goldray Inc. is growing as the company, described by founder Gregory Saroka as “probably the smallest public company in the world” seeks strategic altern…

Interest in Canadian architectural glass maker Goldray Inc. is growing as the company, described by founder Gregory Saroka as “probably the smallest public company in the world” seeks strategic alternatives for a partial or total sell-off. The firm“s size-market capitalization of CAD 2.4 million has not stopped at least four companies from making serious merger-related inquiries since the press release, said Chief Executive Officer Gregory Saroka. He said the interested parties were all strategic players. On 30 May 2003, Calgary, Alberta-based Goldray said it would conduct a review. In early June 2003 the firm was in the middle of interviews with five potential financial advisors and would pick one by mid-June, Saroka said. Saroka started the company 18 years ago with a personal credit card. Goldray treats and shapes flat glass for use in elevators, stairs and floors. Potential purchasers could be competitors or glass manufacturers looking to expand their product range, said Saroka. Among Goldray“s larger competitors is Belgian-based Glaverbel, the European arm of Tokyo-based Asahi Glass Co. Ltd. Merger partners could also be melters, firms that produce “raw” glass for subsequent processing. The top players in that sector include Pittsburgh-based PPG Industries Inc. and privately owned AFG Industries Inc., which is based in Kingsport, Tennessee. AFG describes itself as acquisitive, and a spokesman confirmed that mergers and acquisitions continues to part of the company“s strategy. He declined further comment, citing the fact that the firm is privately held and does not normally discuss its business strategy. Goldray shares dropped to CAD 0.20 from CAD 0.28 on the strategic alternatives announcement. The stock had not traded since March 2003. For 2002, Goldray lost CAD 1.4 million on sales of CAD 13.7 million, compared with a gain in 2001 of CAD 43,000 on sales of CAD 12.6 million.