Saint-Gobain (SG) has announced it is planning to sell off its 3.4BN Euros glass packaging business Verallia in a stock-market listing designed to help the group focus on its core building materials business. SG is planning to launch the initial public offering in Q2 2011, according to reports. SG's packaging unit, which makes bottles & jars for food & drink, was first put up for sale as long ago as 2007. The financial crisis over the past 3y has put the brakes on any disposal, but SG believes that the economic environment is now more conducive to a successful IPO. It is planning to float less than half of the business initially. SG said in a statement: "After 3 difficult years, the general business environment in 2011 is more likely to ensure that the packaging sector will be valued at a price that reflects its true worth." Chairman and chief executive Pierre-Andre de Chalendar said: "For this reason, we are today launching the procedure for a possible stock market listing and IPO that would allow investors to participate in the development of this very attractive business." Meetings with employee representatives have now begun as Saint-Gobain makes the legal preparations for the IPO. News of the planned IPO comes after Saint-Gobain rebranded its packaging unit as Verallia earlier in the year in a bid to raise its profile.
