Following the acquisition of the 25 percent stake, Jiangsu Sterlite Tongguang Fiber Co. will be a wholly-owned subsidiary of STL.
July 7, 2022
Sterlite Technologies Ltd. (STL) has signed the definitive agreement to acquire the balance 25 percent stake in Jiangsu Sterlite Tongguang Fiber Co. Ltd. (JSTFCL). The deal is for cash consideration of RMB 55.67 million (about INR 65 crore) – as published in news reports.
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According to the filing, the company’s existing shareholding in JSTFCL is 75 percent, i.e. 3/4th stake. Post-acquisition of balance 1/4th stake, JSTFCL will be a wholly owned subsidiary of STL. The closing as per the agreement is subject to the conditions precedents as set out in the agreement for acquisition.
In addition, the acquisition will ensure the supply security of optical fibre cables, which in turn will support Sterlite’s expanding optical fiber cable operations.
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In 2011, Jiangsu Sterlite Tongguang Fiber Co. was established as a joint venture between STL and Jiangsu Tongguang Information Co. in China. The joint venture was formed for the manufacturing of optical fibre cables.
