Greek refrigeration company Frigoglass has terminated an agreement to sell its glass operations to GZI Mauritius after the prospective buyer failed to secure necessary financing for the transaction.
Frigoglass last year clinched a $225 million deal to divest all of its glass container operations in Nigeria and Dubai and the complementary plastic crates and metal crowns businesses in Nigeria to GZI, the holding company of aluminum can producer GZ Industries. The agreement was expected to be concluded in the current quarter.
“A condition precedent was not met as GZI did not secure the necessary level of debt financing for the acquisition,” Frigoglass said on Friday.
Frigoglass said it rejected amended offers by GZI because they did not reflect the full value of the glass business and were not in the best interest of the company. Frigoglass is now working with key stakeholders and advisers to decide its next steps, the company added.
Shares in Frigoglass were up 3.9 percent at 0925 GMT, outeperforming the Athens bourse’s general index, which was up by 1.9 percent.
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