18 March 1999: South Africa“s Plate Glass & Shatteprufe Industries (PGSI) said no agreement had been struck with a buyer on the sale of parent South African Breweries“ (SAB) stake in the glass manu…
18 March 1999: South Africa“s Plate Glass & Shatteprufe Industries (PGSI) said no agreement had been struck with a buyer on the sale of parent South African Breweries“ (SAB) stake in the glass manufacturer. “Nor is it likely that any agreement will be reached within the near future,” PGSI said, reacting to recent media reports that SAB will announce the sale of its non-core holding for more than UK 400 million (US$ 640 million). “The reports are entirely speculative regarding the identity of the prospective buyer, the sum involved and the likely timing of an announcement,” the firm said in a statement. Recent press reports have said that SAB, which has moved its share listing to London from Johannesburg in the hope of doing major deals in the brewing industry, is expected to announce the sale of PGSI to its management. SAB put the 68%-owned business, along with other non-core assets, up for sale last year in preparation to relist in London. Reports said that the sale was complex, since PGSI operates in several countries. Despite the denial from PGSI, its Johannesburg-listed shares recently surged as much as 23% to a high of 37.50 rand, but had retraced to 33.50 – a gain of 300 cents or 10%. The firm advised shareholders to exercise caution when dealing in their PGSI shares until a further announcement was made. PGSI, hit by tough trading conditions in South Africa“s recessionary environment, warned last month that its full year results to end March would be significantly lower than envisaged at the half year. It had warned back in November that it would be hardpressed to match the 6.24 rand headline earnings per share posted for the 1998 financial year.