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June 07, 2011 - Sejal 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 wa approved by the company's shareholders by postal ballot. The state of the art manufacturing plant with a capacity to manufacture 550 metric tonnes 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 Sejal Glass Limited said, "The funds realized from the transaction has 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, Sejal 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. Bhatiya & Associates acted as the Corporate Advisors to Sejal Glass Limited in this transaction.
