Saint-Gobain mulls packaging division IPO

By Rory Harrington

- Last updated on GMT

Related tags Initial public offering

Glass container giant Companie de Saint-Gobain has announced plans to float its packaging division on the stock exchange.

The France-based company said it started preparations for the move that could see it carry out the initial public offering on its packaging operations next year.

Packaging has not been seen as a core business for some time and Saint-Gobain said it had been waiting for a market recovery before announcing the proposal. Under French labour laws, the plan can only be formalised once the company has completed consultation with its workforce.

Saint-Gobain also manufactures construction materials and flat glass for the automotive and housing sectors.

“As early as 2007, I clearly stated that the Packaging Sector was out of step with the Group’s strategic focus on the habitat and construction markets,”​ said Pierre-André de Chalendar, chairman and CEO for Saint-Gobain. “After three difficult years, the general business environment in 2011 is more likely to ensure that the packaging sector – which demonstrated its fundamental robustness during the crisis – will be valued at a price that reflects its true worth.”

The company said it is the world's second largest manufacturer of glass containers; making bottles for wines and spirits and jars for food products. It also supplies glass containers for beer, fruit juices, soft drinks, mineral water and oil. With operations in 12 countries and some 15,000 employees, the Packaging Sector reported sales of €3,445 million in 2009.

Alfa Laval

In other corporate news, Alfa Laval has confirmed it will not be raising its offer price of SEK 75 per share for Munters again after rival Cidron tabled a larger bid of SEK 77.

Munters is a major producer of humidity and climate control equipment for a number of sectors including the food processing industry. The company’s board has recommended that shareholders accept the Cidron bid and has withdrawn its previous backing for Alfa Laval’s offer.

But it is understood that Munters’ two largest shareholders - Industrivarden and Latour, - which have a combined 30 per cent stake in the company, favour a takeover by Alfa unless another bidder offers at least SEK 78.75 per share.

The deadline for Alfa’s bid expires tomorrow at 5pm while Cidron’s offer expires on 26 October, 2010.

Related topics Manufacturers

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