[Japan] Asahi To Sell Out Glass Fibre Unit

Asahi Glass Co Ltd will sell its glass fibre business to state-owned Development Bank of Japan and private equity fund Wise Partners for around 16 BN Yen (US$ 140M), to better compete with Corning Inc. Japan's biggest glassmaker will spin off wholly-owned unit Asahi Fiber Glass Co Ltd's core businesses and sell all shares in the operations to a vehicle set up by the DBJ and Tokyo-based Wise Partners, Asahi announced recently. Asahi Glass, the world's second largest manufacturer of LCD glass substrates, has been selling off non-core operations in an attempt to catch up with Corning. The sale will boost Asahi's group net earnings by 6 to 8BN Yen, it said. Sales at Asahi Fiber totalled 31.9BN Yen in 2006, down 25% from the previous year.