The Carlyle Group and three other investment funds are on the shortlist to bid for LCD glass maker NH Techno Glass Corp in a deal that could exceed JPY 100 billion (USD 895 million), financial sources…
The Carlyle Group and three other investment funds are on the shortlist to bid for LCD glass maker NH Techno Glass Corp in a deal that could exceed JPY 100 billion (USD 895 million), financial sources said. Bain Capital LLC, Daiwa Securities SMBC Principal Investments Co and TPG are the other shortlisted bidders for NH Techno Glass, a joint venture between Japan“s Nippon Sheet Glass Co Ltd (NSG) and Hoya Corp . Initial bids were submitted on 30 November 2007 and the second round of bidding is due on 31 January 2008, sources said. It emerged in early November 2007 that NSG was auctioning its 50% stake in the company. It is still unclear whether Hoya will sell part or all of its stake, or hold on to its interest in the venture. The deal could exceed JPY 100 billion if Hoya were to dispose of its entire holding, financial sources said. NSG spokesman Tetsuya Higaki said the company was exploring several options but that nothing was decided, and declined to comment on a possible sale. Hoya spokeswoman Akiko Maeyama said the company had no plans at this time to sell its stake. NH Techno Glass Corp produces LCD glass substrates in Yokkaichi, western Japan, with operations in Taiwan, Singapore and South Korea and annual sales of around JPY 50 billion, and a global market share of about 4%. The market for LCD TVsubstrates is dominated by Corning Inc and smaller Asahi Glass Co and Nippon Electric Glass Co . Price falls and rising upfront costs to make bigger glass substrates are prompting glass makers with inadequate scale to withdraw from operations with thinning margins. LCD TV makers are increasingly shifting to larger substrates, with Sharp Corp saying it would use 10th generation LCD panels at its planned plant in Sakai, western Japan, to go onstream by March 2010. NH Techno Glass Corp now has only 7th generation production technology. Investment bank UBS is advising NSG on the sale. The investment bank also advised NSG on its USD 3 billion acquisition of UK glassmaker Pilkington in 2006.