NSG Group Completes Successful Disposal of Russian Joint Venture
The NSG Group, a global leader in glass and glass products, is pleased to announce the successful completion of the disposal of its joint venture in Russia. This strategic move aligns with the Group’s ongoing efforts to optimize its business portfolio and enhance profitability as part of the Revival Plan 24 (RP24).
Disposal of Joint Venture in Russia
Reason for the Disposal
Under the RP24, the NSG Group has been meticulously reviewing its business operations to ensure a more profitable and sustainable future. The decision to divest from the Russian subsidiaries is in line with this transformative strategy.
The disposed companies include Pilkington Glass LLC and StiS Group of Companies LLC, both located in Moscow, Russian Federation. These subsidiaries were primarily engaged in the manufacturing and sales of glass and glass products.
The shares have been acquired by Mr. Vladimir Voronin, a prominent Russian businessperson. The purchaser has no prior relationship with the NSG Group, ensuring a fresh start for the divested entities.
Summary of the Disposal
As part of the transaction, all shares held by SP Glass Holdings B.V. have been disposed of, resulting in a complete exit from the Russian market for the NSG Group. This strategic move will streamline operations and allow the Group to focus on its core businesses.
Impact on the Group’s Results
The NSG Group anticipates a net gain of approximately JPY 5 billion, which includes the reversal of impairments of investments in Joint Ventures and Associates. This gain will be reflected in the consolidated financial results for the first quarter of the fiscal year ending March 2024. Detailed information regarding this impact will be disclosed once it is confirmed.
With this successful disposal, the NSG Group is well-positioned to execute its revitalization plan and drive sustained growth and profitability in the global glass industry.
Source: NSG Group with additional information added by Apazone