Sezal Glass, which will receive Rs 686 crore from sale proceeds of its float glass manufacturing unit to Saint-Gobain Glass India, will use the funds to expand its existing business and venture into new and related businesses.
Last week, it announced the sale of float glass business along with its Gujarat-based manufacturing unit to Saint-Gobain Glass India for a consideration of Rs 686 crore.
"The funds realised from the transaction have been used by the company towards clearing all the bank debts first.
The balance will be utilised for expanding its existing value added glass business, as well as venturing into new and related businesses through both organic and inorganic routes,"
Sezal Chairman and Managing Director Amrrut S Gada said in a statement here.
With the sale proceeds, the company will be 100% debt-free with reserves to fund the growth, he said.
Saint-Gobain Glass India is a 100% subsidiary of the France-based Compagnie de Saint Gobain. The Binding Business Transfer Agreement was executed between the parties on May 31, 2011, a company statement said here.
The sale was approved by the company's shareholders by postal ballot. The manufacturing plant with a capacity of 550 tonnes per day of float glass is of the caliber and technical knowhow on par with any international glass manufacturer of repute, company said.
As a part of the overall transaction, Sezal Glass and its principal promoters have undertaken non-compete obligations with respect to the float glass business in India with "Saint Gobain" for a period of five years.
The promoters have not received any separate non-compete fee from Saint Gobain and the entire sale consideration has been received by the company, Gada said.
PricewaterhouseCoopers were the Financial Advisors and S H Bathiya & Associates acted as the corporate advisors to Sezal Glass in this transaction.
Sezal Glass is a leading player in the architectural glass processing business in India. Apart from the float glass manufacturing business which has now been sold to Saint-Gobain Glass India, the company is a major player in the processing business.