Haryana FLOAT GLASS TAKE OVER

Haryana Sheet Glass Ltd. (HSGL), of India, announced in December 1995 its intention to acquire Continental Float Glass Ltd. (CFGL), infusing Rs 32 crore as fresh equity in the equity of CFGL, and rena…

Haryana Sheet Glass Ltd. (HSGL), of India, announced in December 1995 its intention to acquire Continental Float Glass Ltd. (CFGL), infusing Rs 32 crore as fresh equity in the equity of CFGL, and renaming it as Universal Float Glass Ltd. (UFGL). The equity of the new company is being expanded from Rs 45 crore to Rs 176 crore. The stakes of existing promoters, Uttar Pradesh Mineral Development Corporation Limited (UPSMDC) and Gulf Development Marine Services & Abdulla Ahmed Nass (GDM), will also increase marginally. Pilkington Plc. of the UK is providing the technical support for the revival of the glass company. Continental Construction Ltd. (CCL) will maintain its equity of Rs 9.57 crore while GDM“s equity will be Rs 4.04 crore. The new company will raise Rs 85 crore from public and financial institutions for balance equity. UFGL will issue fresh shares of Rs 32 crore to HSGL, Rs 6.81 crore to UPSMDC and Rs 6.59 crore to GDM as to effect to increase in equity. UPSMDC will also be allowed to divest 50% of its shares in favour of HSGL at a rate not less than 20% share every year. The price of the shares will be calculated by adding an annual interest rate of 16% from the date of commercial production over and above the par value.