The Somany family, founders of India's largest glass-container manufacturer, Hindusthan National Glass & Industries, are looking to sell about 7.5% of the company's shares to invest in an "unrelated business." The proposed share sale may raise around INR 1.35BN (USD 30M) at current prices, paring the family's holding to 62.5% of the company. The stake sale is expected to be concluded in the current fiscal according to the company's CFO. Details about what the money would be used for was not disclosed. The company also is looking for investors to sell an additional 7.5% stake from its 14.64M in treasury stocks, he said. The inclusion of these treasury stocks, or the company shares held through a trust account for 16.76% of the equity capital, puts the total stake sale at 15%. The company hopes this size will make it an attractive buy for private equity firms. Until recently, HNG was trying to interest a "global leader" as a partner through the sale of treasury stocks. The company hoped a partnership could provide access to new technology & a preliminary agreement had been signed with a potential partner to explore the possibility of a share sale. But the talks did not lead to a deal. HNG's management is expecting a valuation of 6 to 10 times its operating profit or EBIT, depreciation, tax & amortization for the share sale, which was INR 2.70 in 2011, down 15% from the previous year. The vice chairman claimed that the reason for the decrease in operating profit was an increase in fuel costs & packing & material charges, which the company could not pass on to consumers in time. HNG also claims it is eyeing at least 2 more overseas acquisitions this year. If they materialize, the company expects to spend INR 12.50BN (USD 276M) on them. The company had earlier said it was looking at potential takeover targets in West Asia, North Africa & Southeast Asia, with a manufacturing capacity of at least 300/tpd. This is in addition to the Kolkata company's purchase of bankrupt German glass maker Agenda earlier in May 2011 for an undisclosed sum.
