BWI: Sezal Glass Ltd. Sells Float Glass Undertaking to Saint-Gobain Glass India Ltd

Press release from Business Wire India
Source: Sezal Glass Ltd
Thursday, June 09, 2011 10:49 AM IST (05:19 AM GMT)
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Sezal Glass Ltd. Sells Float Glass Undertaking to Saint-Gobain Glass India Ltd


Mumbai, Maharashtra, India, Thursday, June 09, 2011 -- (Business Wire India) -- Sezal Glass Ltd. has announced the sale of its Float Glass Business with its Float Glass manufacturing unit located in Jhagadia, Gujarat, to Saint-Gobain Glass India Ltd. as a going concern on slump sale basis for a gross consideration of INR 6.86 billion. Saint-Gobain Glass India Ltd. is a 100% Subsidiary of the France based Compagnie de Saint Gobain, a world leader in Building Materials. The Binding Business Transfer Agreement was executed between the parties on May 31, 2011.

The sale of the Float Glass Business was approved by the company's shareholders by postal ballot. The state of the art manufacturing plant with a capacity to manufacture 550 metric tones per day of float glass is of the caliber and technical Knowhow at par with any international glass manufacturer of repute.

Commenting on the transaction, Mr. Amrrut S. Gada Chairman and Managing Director of Sezal Glass Limited said, "The funds realized from the transaction have been used by the Company towards clearing all the bank debts first. The balance proceeds 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".

Mr. Gada further added "As a part of the overall transaction, Sezal Glass Limited 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. With the sale proceeds the company will be 100% debt free with reserves to fund the growth and expansion".

PricewaterhouseCoopers Pvt. Ltd, were the Financial Advisors and S.H. Bathiya & Associates acted as the Corporate Advisors to Sezal Glass Limited in this transaction.


About Sezal Glass Limited:

Sezal Glass Limited (BSE: 532993; NSE: SEZALGLASS) is a leading player in the Architectural Glass Processing business in India. Apart from the float glass manufacturing business which has now been sold to Saint-Gobain Glass India Limited, the Company is a major player in the processing business. The Processing facility of the Company is situated in Union Territory of Dadra, Nagar Haveli, Dist Silvassa.

Sezal also operates its retail division under the brand name "Sezal Encasa" from two locations in Mumbai. The Company's retail division trades in all mid and high end decorative glass, art & artifacts, lightings, furniture's, furnishings, sanitary ware, tiles and Wallpapers.



CONTACT DETAILS
Ashwin S. Shetty G.M. Compliance, Company Secretary, Sezal Glass Ltd, +91 (22) 28665100, ashwin@sezalglass.com

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