Nippon Sheet Glass has denied media reports that it is to sell its holding in its NH Techno Glass Corp. joint venture with Hoya Corp. saying that the reports were not based on announcements by the com…
Nippon Sheet Glass has denied media reports that it is to sell its holding in its NH Techno Glass Corp. joint venture with Hoya Corp. saying that the reports were not based on announcements by the company although it did say the firm was in discussions about a possible sale of a 50% stake. US private equity firm The Carlyle Group is well placed to buy a majority stake in the venture in a deal worth about JPY 120 billion (USD 1.11 billion) including debt, a source familiar with the situation was reported as saying on 26 February 2008. The Washington-based buyout firm would purchase Nippon Sheet Glass“s 50% stake in the venture, NH Techno Glass Corp, while Hoya would retain most of its holding, other sources familiar with the deal said. The deal has not been finalised and negotiations are still going on over the price and other matters, they said. Reuters reported on 2 November 2007 that Carlyle was among the bidders for NH Techno Glass, which makes LCD glass substrates in Yokkaichi, western Japan, and has operations in Taiwan, Singapore and South Korea. Its annual sales are around JPY 50 billion (USD 455 million), and it posted a net profit in the year ended in March 2007. NH Techno Glass struggled after problems with its production line but in September 2006 it began cutting loss-making products and jobs, resulting in a return to profit. It is considered a minor player with a 4% share of the global market, according to research firm DisplaySearch. It ranks fourth behind Asahi Glass Co Ltd., Corning Inc. and Nippon Electric Glass Co Ltd., which between them account for about 95% of the global market in glass for LCD panels. Investment bank UBS is organising the auction, according to sources. UBS also advised Nippon Sheet Glass on its acquisition of British glassmaker Pilkington in 2006.