Shares in Chilean glass products maker Cristalerias de Chile–which has a market capitalization of roughly $700 million and produces glass bottles and containers mainly for the food and beverage industry–rose 15% on Friday after the firm announced an agreement to sell its 20% stake in cable television operator VTR–the nation’s largest cable-television and broadband provider–to Celfin Capital for $303 million (roughly 7x EBITDA, per one analyst). A week earlier the company placed two series of five-and 20-year inflation-linked bonds worth a total 41.46 billion Chilean pesos ($75.3 million). One condition of the VTR sale is its possible future listing on the local stock market. VTR is currently in the process of bidding on a 3G wireless license which would allow it to enter the mobile telecoms market starting in 2010.

Cristalerias shares are still undervalued and thus make a sensible addition (following an expected short-term pullback) to our mock frontier portfolio; the case for the firm is strengthened as it represents a proxy on domestic demand growth against a backdrop of a stable nation with sound fiscal practices–its latest current account surplus was $1.13 billion in the second quarter, or 2.9% of GDP.