Nippon Sheet Glass Company, Limited
NSG Group: Fundamental Measures Towards the New NSG Group
Nippon Sheet Glass received a total of 165 billion yen in third-party allotment capital from Apollo Fund and executed privatization by repurchasing shares from existing shareholders at 500 yen per share through share consolidation. Additionally, it implemented a quasi-DES of 140 billion yen to significantly reduce borrowings and improve its capital structure.
Key Figures
- Amount Received from Third-Party Allotment Capital Increase: 165 billion yen
- Share Consolidation Payment Amount (per share): 500 yen (11.1% premium over TPA price of 450 yen)
- Amount of Quasi-DES Implemented: 140 billion yen
- Repayment Amount of Existing Borrowings by UK Subsidiary: 189 billion yen
- Interest-Bearing Debt as of End of December 2025: 570.2 billion yen
AI要約
Overview of the Transaction
Nippon Sheet Glass received capital of 165 billion yen through a third-party allotment (TPA) by Apollo Fund and obtained necessary shareholder approval at the ordinary general meeting. JIS and UDS converted their preferred equity holdings into common stock, and through share consolidation, repurchased shares from existing shareholders at 500 yen per share to execute privatization. The share consolidation payment amount represents an 11.1% premium over the TPA price and a 23.5% premium over the closing price on the last business day before the announcement. Furthermore, a total of 140 billion yen debt conversion into equity (quasi-DES) was implemented by major financial institutions, refinancing domestic existing borrowings and repaying borrowings of the UK subsidiary.
Outlook and Management System After Completion of the Transaction
This transaction will realize Nippon Sheet Glass's privatization and establish the structure for sustainable growth as the new NSG Group. By substantially reducing the high levels of borrowings, the company aims to improve its capital structure and interest burden securing liquidity for strategic investments. With improved business cash flow and a sounder capital structure, it will promote strategic investments in growth areas such as environmental regulation compliance, high value-added products, and products for solar power generation. From a management perspective, under a partnership with Apollo Fund, a Value Creation Office (VCO) will be established, with management and employees united to drive business transformation.
