Metro Performance Glass - Highbrook Business Park Photo: SUPPLIED
The country's biggest glass manufacturer Metro Performance Glass has been grilled by shareholders over the potential sale of its Australian business and its overall performance.
In a sometimes tense shareholders meeting, which saw independent director Graham Stuart voted off the board, Metroglass said activity would likely remain soft in the near term, and may worsen heading into 2024.
"Activity levels in key markets are expected to remain stable at the softer levels for at least the next four months," Metroglass chief executive Simon Mander said.
"Economic headwinds may accelerate a further activity decline at the end of 2023 and into 2024," Mander said.
The recent failed takeover bid by two of its major shareholders did not feature heavily in discussions.
However, a number of shareholders raised concerns about the logic behind selling its better performing Australian Glass Group division, which had been up for sale as Metroglass looked to pay down its debt.
Metroglass chair Peter Griffiths said the company felt it had little choice when it came to paying down the debt, which at 30 June was at $55 million, compared to $60m at 31 March.
"We're faced with the tough choices of finding capital elsewhere and there are really only two ways, a capital raise or selling assets," Griffiths said.
"Now the board's thought very carefully about this and has decided that the best option for us is an AGG sale," he said.
Griffiths said the board was hopeful of a "very good outcome" from the sale, with "encouraging" indicative bids.