Sterlite Technologies Limited said the demerger will enable both STL and the new global services entity to grow independently with greater agility and focus, creating strong and distinct platforms for achieving their goals.
Jul 15, 2024
The shareholders and creditors of optical and digital solutions company Sterlite Technologies Limited (STL) have approved the proposal for demerger of its global services business, setting the stage for shares of the new business to be listed separately.
The company said in an exchange filing that the demerger proposal received 100 percent approval from both secured & unsecured creditors and 99.98 percent from equity shareholders through the voting process. The voting results reflected a resounding confidence in growth potential and value creation of STL, it added.
The company said the demerger will enable both STL and the new global services entity to grow independently with greater agility and focus, creating strong and distinct platforms for achieving their goals. This will also bring more value for investors and strategic partners having a specific interest in the global services business, it added.
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STL further said that the economic interest of any shareholder of the demerged company would not change post-demerger. It said the process of getting approval from the National Company Law Tribunal (NCLT) would be completed in an indicative timeline of 2-3 months.
The Global Services Business has brought substantial value to its customers over the past decade.With its automation-led digital ecosystem creation capability, the business has been making significant strides in India and the UK, noted the release.
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It said STL has been a major part of India’s digital growth story, blending the spirit of nation-building and digital infrastructure creation with automation. Over 1.35 lakh km of optical fibre network have been deployed across the country in 23 states, positioning STL as a trusted partner for delivering critical optical solutions, it added.
