On 24th April, Borosil Renewables Ltd reported on markets that its board of directors had authorized the purchase of 100% of Interfloat Corporation and GMB Glasmanufaktur Brandenburg GmbH (GMB). Both companies are involved in the solar glass industry.
“The Borosil Renewables board has approved the execution of a share purchase agreement (SPA) between the company, the subsidiaries, HSTG Glasholding GmbH, and Blue Minds IF Beteiligungs GmbH (SPA) as well as the execution of other necessary documents in regard to the proposed transaction, whereby the company 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 statement.
Borosil Renewables to pay an extra sum
Borosil will pay Euro 24.91 million in cash and an extra sum dependent on GMB’s performance in the current fiscal years of 2024, 2025, and 2026, but not more than 50% of GMB’s EBIT.
Borosil will own and control 100% of GMB through its German subsidiary. GMB recorded revenue of Euro 46.20 million in 2021, up from Euro 45.4 million the previous year. It made Euro 38.8 million in revenue in 2019.
Borosil Renewables will also purchase Interfloat for Euro 5.09 million in cash, Euro 22.50 million in stock swaps, and an additional amount to be calculated based on Interfloat’s performance in the current year 2024, 2025, and 2026, which will not exceed 50% of Interfloat’s EBIT.
Interfloat will be completely controlled by the corporation and its Liechtenstein subsidiary.
Moreover, Interfloat will be owned by the corporation directly to the tune of 68.09 percent, with the Liechtenstein arm holding the remaining 31.91 percent.
Interfloat recorded revenue of Euro 59 million in 2021, up from Euro 51.5 million the previous year. It made 44.4 million Euros in revenue in 2019.
The Borosil Renewables board also approved a private offering of preferential shares worth Euro 22.50 million to HSTG Glasholding GmbH and Blue Minds IF Beteiligungs GmbH for compensation other than cash.
Interfloat, a Liechtenstein-based company, has been distributing glass to customers in Europe for about 40 years and has strong ties to the region’s glass industry.
GMB, a German company, is in the solar glass production sector. With a current capacity of 300 TPD (tonnes per day), it produces glass for the European solar (solar PV as well as solar thermal) and greenhouse glass sectors.