Frigoglass to retain Glass Operations; terminates sale agreement with GZI

Athens, February 26, 2016 – Frigoglass SAIC (“Frigoglass”) announces the termination of the agreement with GZI Mauritius Limited (“GZI”) signed on May 21, 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. Amended offers made by GZI were declined as not reflecting the full value of the Glass business and therefore not being in the best interest of Frigoglass and its stakeholders.  

Frigoglass' Glass business retains its strong local market position and technical excellence. Frigoglass believes that it will remain the leading glass packaging manufacturer in Nigeria and is ideally placed to capitalize on the long-term beverage consumption growth in Africa, driven by its customers' sustained investments and the continent's attractive growth prospects.

The Glass business continues to perform well and remains a valuable asset for Frigoglass, despite challenging trading conditions in Nigeria.  During 2015, the Glass business delivered on its business plan and successfully completed a furnace rebuild in Nigeria, enhancing its efficiency and capacity. The Dubai based glass business significantly improved its cost base and, consequently, its operating margin.

Frigoglass is working with its key stakeholders and a team of highly reputable advisors to determine its next strategic steps, identify initiatives to preserve the value of the business for all stakeholders and achieve an optimal capital structure.