Borosil Renewables Ltd on April 25 announced on exchanges that its board approved buying of 100 percent stake of Interfloat Corporation and GMB Glasmanufaktur Brandenburg GmbH (GMB). Both the entities are engaged in the business of solar glass.
"The board has approved the execution of a share purchase agreement between the company, the subsidiaries, HSTG Glasholding GmbH and Blue Minds IF Beteiligungs GmbH (SPA) and execution of other necessary documents in regard to the proposed transaction, whereby the company (along with its subsidiaries) shall agree to acquire 100 percent of the share capital of the target companies from HSTG Glasholding GmbH and Blue Minds IF Beteiligungs GmbH," the company said in a release to exchanges.
Borosil will buy GMB at Euro 24.91 million in cash and an additional amount to be determined based on the performance in the current year of 2024, 2025 and 2026, which will be not exceeding 50 percent of EBIT of GMB.
Borosil, through its German arm, will hold and control 100 percent stake in GMB. For the current year 2021, GMB reported a revenue of Euro 46.20 million versus Euro 45.4 million last year. In 2019, it reported revenue of Euro 38.8 million
Borosil will also buy Interfloat for cash consideration of Euro 5.09 million, swap of shares equivalent of Euro 22.50 million and additional amount to be determined based on the performance in the current year 2024, 2025 and 2025 and 2026 which will be not exceeding 50 percent of EBIT of Interfloat.
The firm and its Liechtenstein arm will control 100 percent of Interfloat. The company will directly hold around 68.09 percent stake in Interfloat and the Liechtenstein arm will hold the remaining 31.91 percent stake. For the current year 2021, Interfloat reported a revenue of Euro 59 million versus Euro 51.5 million a year ago. In 2019, it reported revenue of Euro 44.4 million.
Borosil board also approved issue of preferential shares on a private placement basis to HSTG Glasholding GmbH and Blue Minds IF Beteilgungs GmbH worth Euro 22.50 million for consideration other than cash.
Interfloat, an entity based in Liechtenstein, has been selling glass to customers in Europe for close to 40 years and has deep connections with the glass trade in the region.
GMB, an entity based in Germany, is engaged in the solar glass manufacturing business. It manufactures glass for the European solar (solar PV as well as solar thermal) and greenhouse glass markets, with a current capacity of 300 TPD (tonnes per day).
Pradeep Kheruka, Executive Chairman of Borosil Renewables Ltd., said, “This acquisition moves us closer to our vision of being the most customer-centric company in the world. We believe that by leveraging the existing synergies and several complementary skill sets offered by the two companies, we will be able to serve our customers better. With the capacity expansions planned in India and Europe in the near future, we expect to enhance the reliability of our supply chains for our customers. On this journey, our unremitting efforts shall remain focused as always on reducing the overall carbon footprint of our operations.”
Christian Kern, Chairman of the Board of Directors, Interfloat Corporation, and former Austrian chancellor said, “Borosil Renewables, a worldwide innovation leader with focus on green production of solar panels, is a huge gain for Interfloat and the production in Brandenburg. In such difficult times, when the European industry suffers from soaring gas prices, a strong international partner will ensure the European production of clean energy.” By the explicit wish of Borosil, Kern will remain on the Board of Interfloat.
Preet Singh, Managing Director and head of the Industrials Group at Lincoln International, Mumbai, the buy-side advisor for the deal, said, "We are very excited to advise Borosil Renewables on this strategic transaction. On the backdrop of accelerating transition to renewable energy globally, Interfloat Group's proposed acquisition will expand Borosil Renewable's geographic presence, bring scale economies and enhance value for customers. Both parties’ commitment to execute this transaction reflects strongly on the strategic fit between Borosil Renewables and Interfloat Group's businesses."
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