US private equity firm The Carlyle Group will lead a JPY 58.1 billion (USD 560 million) management buyout of an LCD glass venture jointly owned by Japan“s Hoya Corp and Nippon Sheet Glass, Hoya said …
US private equity firm The Carlyle Group will lead a JPY 58.1 billion (USD 560 million) management buyout of an LCD glass venture jointly owned by Japan“s Hoya Corp and Nippon Sheet Glass, Hoya said on 9 May 2008. Under the deal, Nippon Sheet Glass would unload its 50% stake in the venture, NH Techno Glass Corp, to a special-purpose vehicle set up by Carlyle for JPY 40.6 billion, while Hoya would sell a 21.5% stake for JPY 17.5 billion. The vehicle would merge with NH Techno Glass in late September 2008, resulting in Hoya holding 47.4% in the new entity. Carlyle would hold 52.6%, Hoya said. It was reported in late-February 2008 that Carlyle was the preferred bidder for the glass venture. NH Techno Glass faces growing price competition from bigger rivals, who can invest in new equipment and benefit from economies of scale. Carlyle and Hoya plan to expand the venture“s manufacturing plants overseas and aim for an initial public offering, the two said in a release. Hoya said it would book a special profit of JPY 10.4 billion in the April-June 2008 quarter on the sale of the stake, while Nippon Sheet Glass would book a JPY 25 billion special profit on a consolidated basis in the year commencing April 2008. NH Techno Glass competes with Corning Inc, Asahi Glass Co Ltd and Nippon Electric Glass Co Ltd which together dominate the market for glass used to make LCD panels.