Nippon Sheet Glass Co. (NSG) is to pay GBP 1.65 (JPY 340/USD 3) a share to take control of Pilkington PLC, the Japanese glass manufacturer said 27 January 2006. The deal, worth JPY 358.5 billion (USD …
Nippon Sheet Glass Co. (NSG) is to pay GBP 1.65 (JPY 340/USD 3) a share to take control of Pilkington PLC, the Japanese glass manufacturer said 27 January 2006. The deal, worth JPY 358.5 billion (USD 3 billion/EUR 2.6 billion), is for the 80% of Pilkington that NSG does not already own. The deal calls for the company to raise JPY 616 billion (USD 5.3 billion/EUR 4.4 billion) when refinancing Pilkington“s debts and other costs is included, NSG said in a press release. Pilkington“s board of directors has expressed its support for the share purchase plan and will continue to take part in management, NSG said. Pilkington had rejected a lower offer from NSG in 2005. Nippon Sheet Glass, which already owns about 20% of Pilkington, said it plans to use bank loans in Japan and the United Kingdom and will issue stock totaling JPY 110 billion (USD 941 million/EUR 793 million) to finance the deal. The acquisition of Pilkington, whose main US office is located in Toledo, Ohio, will make Nippon Sheet Glass a global leader in the flat glass industry with the largest market share with annual sales of about JPY 760 billion (USD 6.5 billion/EUR 5.5 billion), the Tokyo-based company said. Nippon Sheet Glass Co.“s shares rose 5.16% to JPY 509 (USD 4.39) in Tokyo.