Leading integrated float glass, automobile and construction glass manufacturer Xinyi Glass Holdings Limited (Xinyi Glass) announced at the beginning of November 2007 that it has signed an agreement to..
Leading integrated float glass, automobile and construction glass manufacturer Xinyi Glass Holdings Limited (Xinyi Glass) announced at the beginning of November 2007 that it has signed an agreement to acquire the entire equity interest in Shenzhen China Southern Automobile Glass Company Limited (Shenzhen CS Automobile Glass) from China Southern Glass Holding Co., Ltd. (CSG Group). After the acquisition is completed, Shenzhen CS Automobile Glass will become a wholly-owned subsidiary of Xinyi Glass. Total cost for the acquisition is approximately RMB 234.64 million (approximately HKD 236.98 million) in cash, financed by internal resources of the Xinyi Glass. Shenzhen CS Automobile Glass produces and sells laminated and tempered automobile safety glass and is one of the top three exporters of laminated automobile glass in China. The company has an annual production capacity of 1.3 million pieces of automobile glass products of different specifications at its production lines in Shenzehen. Lee Yin Yee, Chairman of Xinyi Glass, said, The acquisition agreement will allow us to immediately expand production scale for automobile glass. Our leadership in the global automobile glass market will also be strengthened as our customer base and share in the export market will be enlarged through eliminating a competitor. The acquisition will see our automobile glass business grow at increasing speed. Lee concluded, With improved economies of scale and synergies with our existing automobile glass and float glass operations, we are confident that Shenzhen CS Automobile Glass will see its margin matching that of the Group“s existing automobile glass operation within a year after the acquisition and contribute to better returns to our shareholders.