HNG close to buying 2 firms

Date: 3 March 2011

Glass bottle manufacturer Hindusthan National Glass (HNG) is in advanced talks to acquire two companies in Eastern Europe, Southeast Asia and MENA (Middle East and North Africa) regions.

The company will shell out between Rs 500 crore and Rs 600 crore, cumulatively, on both these acquisitions.

"We have identified three areas for investment in container glass global manufacturing. The investment would entail around Rs 200-500 crore per company, but the total outflow would depend on what amount of debt we take on the book," said Mukul Somany, vice-chairman and managing director.

Funds for the acquisitions would be arranged from various options. HNG is looking at encashing around 17 per cent of its treasury stock, garnering around Rs 400-500 crore. It created its treasury stock in 2002, when it merged with the Indian operations of Owens Brockway. Also, it has a strong balance sheet, with a debt equity ratio of only 0.35:1, enabling it to raise debt comfortably. Further, its current cash pile stands at around Rs 90 crore.

According to Somany, HNG is conducting due diligence on these deals and an announcement should be expected in the next three-four weeks. He, however, refused to divulge the names of the companies HNG is eyeing for acquisitions.

On the domestic front, the Kolkata-based company has lined up a capex of Rs 2,500 crore in the next three years. It plans to invest about Rs 650 crore in a new facility at Naidupeta in Andhra Pradesh and Rs 550 crore in expanding its existing plant at Nashik.

600450 HNG close to buying 2 firms glassonweb.com

See more news about:

Others also read

Proprietary laminate windows collect, store energy; convert it to electricityRIVIERA BEACH, FL – An innovative new patented technology transforms office building windows into "solar farms" and allows these structures to reuse collected energy and become self-sufficient in the event of a power outage.
DALLAS, Texas, December 22, 2011 /PRNewswire/ --ReportsnReports adds new market research report 'Solar Photovoltaic (PV) Power - Global Market Size, Installation Prices, Module Market Shares, Market Segmentation, Regulations and Key Country Analysis to 2020' to its store.
The University of Minnesota's historic Folwell Hall completed three years of extensive renovation, just time for the 2011 academic year.
The renewal process for AAMA Corporate Members is now open. AAMA Corporate Membership is available to businesses involved in the manufacture, sale or service of fenestration products and is renewed on an annual basis.
Today designers and architects are looking to the hotel bathroom as the new frontier of the guestroom, turning what has long been a mostly functional space into a haven and means of escape.
Glassman as one of the largest glass processing machine manufactures in the world presented ZAK Glass Technology Exhibition during 8-11 December 2011, in Mumbai, India.

Add new comment