Flat Glass Industries Ltd has agreed to buy the entire minority interests in 50%-owned Burnbridge Glass Pty Ltd.
FGI will also buy the remaining 50% interests it does not already own in the land and …
Flat Glass Industries Ltd has agreed to buy the entire minority interests in 50%-owned Burnbridge Glass Pty Ltd. FGI will also buy the remaining 50% interests it does not already own in the land and buildings occupied by Burnbridge Glass at 1A Pennant St, Cardiff, New South Wales. The agreements are conditional on approval by FGI shareholders. FGI will issue 1.55 million shares as consideration for the transactions. The consideration is apportioned as AUD 100,000 for the entire minority interests in its 50%-owned Burnbridge Glass. The balance of the consideration, being AUD 1.76 million, is allocated to the acquisition of the remaining 50% interest not already owned by FGI in the property. FGI already owns 50% of the property which it acquired for AUD 750,000. The land and buildings at 1A Pennant St, Cardiff were independently valued for FGI at AUD 3 million in March. At completion of the transactions a net unrealised gain will be taken up as a revaluation reserve by FGI amounting to about AUD 285,000. Burnbridge Glass is currently commissioning a new glass toughening furnace and expects the plant to be operational by the end of July 2008. The new plant is expected to result in a significant increase in sales revenue for the company over 2008/09.