Greek refrigerator maker Frigoglass and majority shareholder of Beta Glass Nigeria Ltd has agreed to sell its stake in Beta Glass Nigeria as well as its Glass making business in Dubai to aluminum can producer GZ Industries for $225 million (including sale of its Dubai entity) in an effort to cut debt and focus on its cooler business, it said on Friday.
The company made this announcement in a press release published on the website of the NSE. Beta Glass has a current market capitalisation of N18.1 billion or $90.9million. Frigoglass owns about 70% of Beta Glass.
Last year Nairametrics had reported that Frigoglass was looking to divest its operations in Nigeria and this deal therefore confirms competition of its divestment plans which it apparently began late last year.
GZ Industries Ltd, the purchaser, is the largest can manufacturer in West Africa and has operations in Nigeria. GZ Industries in its website is owned by
- Standard Chartered Private Equity,
- A group of four individual investors,
- Verod Capital Management and
- Ashmore Private Equity
Beta Glass shares has risen 31% year to date and has been one of the best performers this year. The share price closed at N36.4.
Beta Glass in its 2014 FY results announced its earnings per share rose 62% to N4.78 and followed that up with a 24% rise in earnings per share to 85 kobo at the end of Q1 2015.
Delta State Government owns 5% of Beta Glass Plc and it is not confirmed if they will also be selling their stake.