Sezal Glass, which will receive INR 686 crore from sale proceeds of its float glass manufacturing unit to Saint-Gobain Glass India, will reportedly use the funds to expand its existing business and ve…
Sezal Glass, which will receive INR 686 crore from sale proceeds of its float glass manufacturing unit to Saint-Gobain Glass India, will reportedly use the funds to expand its existing business and venture into new and related businesses. “The funds realized from the transaction have been used by the company towards clearing all the bank debts first. The balance will be utilized for expanding its existing value added glass business, as well as venturing into new and related businesses through both organic and inorganic routes,” Sezal Chairman and managing director Amrrut S. Gada said in a statement. With the sale proceeds, the company will be 100% debt-free with reserves to fund the growth, he added. Saint-Gobain Glass India is a 100% subsidiary of the France-based Compagnie de Saint Gobain. The Binding Business Transfer Agreement was executed between the parties on 31 May 2011, with PricewaterhouseCoopers acting as Financial Advisors and SH Bathiya & Associates as corporate advisors to Sezal Glass in the transaction. As a part of the overall transaction, Sezal Glass and its principal promoters have undertaken non-compete obligations with respect to the float glass business in India with Saint Gobain for a period of five years. The promoters have not received any separate non-compete fee from Saint Gobain and the entire sale consideration has been received by the company, Gada said.