Vidrala aims at controlling stake in Ricardo Gallo

Following remarks by Vidrala SA chairman Carlos Declaux at the company AGM on 18 June 2003 that the Spanish firm was considering acquisition prospects along the Mediterranean coast, the company instea…

Following remarks by Vidrala SA chairman Carlos Declaux at the company AGM on 18 June 2003 that the Spanish firm was considering acquisition prospects along the Mediterranean coast, the company instead revealed plans on 23 July 2003 to buy 71.45% of Portuguese glass container maker Ricardo Gallo for EUR 13.3 million (USD 15.29 million). Vidrala will also give Ricardo Gallo 500,000 of its own shares in return for the stake in the Portuguese company. Vidrala has signed a letter of intent to acquire the 71.45% stake in Vidrala, but the final agreement is still subject to negotiation and will depend on the due diligence of Ricardo Gallo. The Portuguese company posted annual turnover of EUR 48 million (USD 55.1 million) in 2002 and had an average annual capacity of 160,000 tonnes of glass. The acquisition of Ricardo Gallo will consolidate the expansion plans of Vidrala, while the Portuguese company will obtain much needed economic security and market share, which the company currently lacks due to its small size. Vidrala posted a net profit of EUR 3.75 million (USD 4.31 million) for the first three months of 2003, up 10.2% year-on-year, the company said on 22 April 2003. The turnover of Vidrala went up by 6.65% to EUR 31.97 million (USD 36.7 million). Vidrala paid a gross dividend of EUR 0.305 (USD 0.350) per share in February 2003 and spent a total of EUR 6.31 million (USD 7.24 million) on the dividend payment. The sales volume of the company rose by 5.24% for the 1Q of 2003.