Vitro flat glass division strengthens financial position

The merger of the Vitro S.A.B de C.V. subsidiary Vitro Plan, S.A. de C.V. with Vimxico S.A. de C.V., a former creditor of Vitro Plan and a 100% owned subsidiary of Vitro, S.A.B. de C.V., was approved …

The merger of the Vitro S.A.B de C.V. subsidiary Vitro Plan, S.A. de C.V. with Vimxico S.A. de C.V., a former creditor of Vitro Plan and a 100% owned subsidiary of Vitro, S.A.B. de C.V., was approved on 11 December 2006 at an extraordinary general shareholders meeting of Vitro Plan on second call. Through the merger Vitro Plan will reduce its debt by USD 135 million, cutting its ratio of debt to EBITDA from 4.5 to 3.2 times. The merger will strengthen the financial position of the flat glass business unit. “This initiative allows us to strengthen our relationships with customers and suppliers. A stronger financial structure allows Flat Glass to improve its competitive position in Mexico and all the countries in which we operate. Vitro Plan will be a stronger company”, said Hugo Lara, Chairman and CEO of Vitro Plan. With the approval of the merger, Vitro will own 91.8% of Vimxico and its partner Pilkington will own the remaining 8.2%. Pilkington opposed the adoption of the shareholder resolution.