THE Australian subsidiary of Malaysian-owned Armourglass Limited is being bought by its management team of Frank Tenaglia and Gerhardt Trichardt.
According to information released to the Australian Stock Exchange, the sale price is $330,000, $250,000 of which is to be in cash, with a further $80,000 paid over the next four years.
Armourglass Limited will retain a 20 per cent interest in Armourglass Australia.
Armourglass Australia will take control of Armourglass’s Australian and New Zealand markets.
However, the sale is still subject to board, ASX and shareholder approval.
If the sale proceeds Armourglass Australia will continue to operate from its Crocker Drive premises in Malaga. Its research and development and production operations are based there.
Under the proposed sale arrangement Armourglass Australia will manu-facture and supply Armourglass products on a cost-plus basis to its subsidiary in Malaysia and joint venture partner in Indonesia.
The company has become a large player in the security industry, carrying out a number of fitouts for Australian prisons. It is probably best known for its bullet and smash-resistant laminated glass products, although it provides other armour products.
One of its most notable contracts was the provision of armoured Hummers – civilian versions of the US Army’s main four-wheel drive vehicle – for the Queensland prison service.
The armour on those vehicles was a variation on the ceramic normally found in china plates but capable of withstanding impacts from high-powered rifles.
Mr Tenaglia said interest in the company’s products had been “over the top” since the terrorist attacks on the US on September 11.
