After much speculation, Pilkington accepted the ‘friendly' acquisition advance from its 20 per cent shareholder, Nippon Sheet Glass (NSG), on 27 February, at the third formal bid.

NSG and Pilkington have agreed on an acquisition price of 165 pence per Pilkington share in an agreement valuing the British glassmaker at £2.2 billion. The combined operation will rival Asahi.

The Japanese glassmaker formulated its ‘new vision' in 2000, aiming to become a truly global concern, and acquired a 10% stake in Pilkington. One strategy identified was ‘global cars', and commentators suggest the Pilkington acquisition was prompted by demands from Toyota.

Total funds for the transaction are around £3.0 billion. NSG has financed the deal through convertible bonds and its own cash. Bonds are convenient to both parties as shareholders can cash them in at their convenience to minimise capital gains tax.

Stuart Chambers, Pilkington's CEO, and other key management members have agreed to continue their commitment to Pilkington and NSG group management following the transaction and the head office is to remain in St Helens.

Source

Glass Age