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Frigoglass Group, a UK-based manufacturer of beverage coolers, is in talks to sell its Nigerian business, Beta Glass Plc, as it looks to raise cash ahead of looming debt maturities.
Beta Glass which is Africa’s largest glass container producer, is drawing interest from potential buyers, Chairman Gagik Apkarian said in an interview.
He declined to name the interested parties, but said Beta’s soaring profit made it an attractive asset.
As of June, the Frigoglass Group had roughly €114.5 million ($134.7 million) of senior secured bonds coming due in March and April, while public filings show it sits on just €29 million of cash.
Apkarian said Betaglass, the Nigerian unit, has a market share of over 65% in the country, serving customers such as Coca-Cola HBC, Heineken NV and ABInBev SA. It is expected to achieve near-record profitability this year, he added.
Beta Glass shares have soared almost 600% this year and are trading around N486 per share. The company has a market capitalisation of N291.5 billion ($194 million) and trades at 10.4 times earnings.
With improved operational efficiency at its plants in Agbara, Ijebu Ode, and Ughelli and a streamlined production as well as controls combined with growing demand for its products, the company is set to maintain its growth and profitability streak.
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