India: Floatglass India and Asahi India merge to form giant

The boards of Asahi India Glass Ltd (AIGL) and Floatglass India Ltd (FGI) have approved the amalgamation of FGI with AIGL, subject to statutory approval.
Under the terms of the merger, Asahi India w…

The boards of Asahi India Glass Ltd (AIGL) and Floatglass India Ltd (FGI) have approved the amalgamation of FGI with AIGL, subject to statutory approval. Under the terms of the merger, Asahi India will issue three equity shares of INR 1 each, fully paid up and four 10% cumulative redeemable preference shares of INR 10 each, fully paid up to the shareholders of FGI for every eight equity shares of INR 10 each, fully paid up held by them in FGI. The appointed date for the merger is proposed to be 1 April 2002. AIGL currently holds a 79.6% stake FGI, which it had acquired in 2001 following initiatives by Asahi Glass Company (AGC), Japan to restructure its Indian operations. Under the proposed scheme, this holding of equity by Asahi India in FGI would be cancelled. Thus, the paid up equity capital of Asahi India would increase from the current INR 74 million to INR 80 million. The merger would also entail the issue of preference shares of Rs 80 million by AIGL. The preference shares would have a tenure of 12 months and carry a dividend of 10%. “This merger will help the Asahi India Group move forward towards achieving its vision of emerging as an end to end player in the glass value chain,” said Mr Sanjay Labroo, Managing Director of Asahi India Glass. “The merged entity will be the largest player in the glass industry in India vertically integrated from manufacturing architectural float glass to manufacture of automotive laminated and tempered glass,” he said in a statement issued in New Dehli on 30 January 2003. The proposed merger takes forward the restructuring initiated in 2001 and brings the operations of Asahi Group in India under one entity.