Nippon Sheet Glass Co., Ltd. (NSG Group) announces that it has agreed a share exchange transaction with China Glass Holdings Ltd under which NSG Group will acquire 100 percent control of Taicang Pilkington China Glass Special Glass Limited in return for the sale to China Glass Holdings of part of the 40.14 percent stake owned by NSG Group in JV Investments Limited.
NSG Group has two joint ventures with China Glass Holdings, a company listed on the Hong Kong Stock Exchange in which NSG Group currently has a 29.9 percent equity stake. One is a 50:50 joint venture based in Taicang, China and is focused on the manufacture and sale of low iron rolled glass. This glass is used in the manufacture of crystalline silicon based solar modules. The other is a joint venture (called JV investments Limited) with China Glass Holdings and a private equity fund managed by Hony Capital. This joint venture, in which NSG Group has a 40.14 percent stake, has ownership interests in a number of float lines in China. It is managed by China Glass Holdings and Hony Capital.
Under the terms of the share exchange agreement signed with China Glass Holdings, NSG Group will acquire the 50 percent stake owned by China Glass Holdings in Taicang Pilkington China Glass Special Glass Limited. In return, NSG Group will sell to China Glass Holdings 14.68 percent of the issued share capital of JV Investments Limited. Accordingly, upon completion of the transaction NSG Group will own 100 percent of Taicang Pilkington China Glass Special Glass Limited and 25.46 percent of JV Investments Limited. Completion of the share exchange is subject to approval by the other shareholders of China Glass Holdings.
NSG Group believes that taking 100 percent ownership of the Taicang line is in its best interests, as the line forms part of its solar energy business unit and is focused on the production of value-added products. JV Investments is on the other hand primarily focused on the manufacture and sale of commodity float products in China and is managed by China Glass Holdings. Whilst NSG Group is confident about the prospects of both joint ventures, the share swap is consistent with NSG Group's strategic objective to further develop its solar business.
