GZI terminate agreement with Frigoglass
GZI reports that Frigoglass has announced the termination of the agreement with GZI signed on 21 May, 2015 regarding the divestment of its glass business.
A condition precedent was not met as GZI did not secure the necessary level of debt financing for the acquisition, as a result of a change in regulations, which restricts the ability to leverage Beta Glass and the current adverse macroeconomic conditions in Nigeria. Amended offers were made by GZI but Frigoglass’ board of directors declined these.
With the support of its shareholders, GZI will continue to develop opportunities in sub-Saharan Africa as its target markets continue to show growth. The new factory at Aba in the East of Nigeria is now manufacturing speciality cans and supplying customers in the region. In South Africa the plant is under construction and will commence production later this year.