Apollo-backed recapitalization to take Nippon Sheet Glass private and overhaul capital structure

Nippon Sheet Glass Company ( (JP:5202) ) just unveiled an update.

Nippon Sheet Glass plans a major recapitalization that will see funds managed by Apollo Global Management acquire control through a ¥165 billion third-party share allotment and subsequent share consolidation, making Apollo’s vehicle the company’s sole shareholder and leading to delisting. The transaction, combined with a ¥140 billion quasi debt-equity swap involving major Japanese financial institutions, will be used to repay borrowings at a U.K. subsidiary and strengthen the balance sheet, reshaping NSG’s ownership structure and positioning it for future growth under private ownership.

The board has approved proposals to amend the articles of incorporation, increase authorized shares, consolidate 122,222,222 shares into one, abolish the share unit system, and provide a ¥500-per-share cash payment to existing shareholders other than Apollo’s vehicle, all subject to shareholder and regulatory approvals. Once completed, Apollo’s special purpose company will become NSG’s parent and largest shareholder, while participating banks convert their credit exposure into equity-like interests via the limited partnership structure, signaling a coordinated effort by creditors and the new sponsor to stabilize and recapitalize the glass maker.

The most recent analyst rating on (JP:5202) stock is a Hold with a Yen441.00 price target. To see the full list of analyst forecasts on Nippon Sheet Glass Company stock, see the JP:5202 Stock Forecast page.

More about Nippon Sheet Glass Company

Nippon Sheet Glass is a Japanese glass manufacturer headquartered in Tokyo, operating in the global architectural, automotive, and technical glass markets. The company supplies glazing and specialized glass products to construction, transportation, and industrial customers worldwide, and relies heavily on international operations, including subsidiaries in the U.K.

Average Trading Volume: 3,234,332

Technical Sentiment Signal: Strong Sell

Current Market Cap: Yen46.61B

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