Sterlite Technologies Limited (STL) has signed the definitive agreement to acquire balance 25% stake in Jiangsu Sterlite Tongguang Fiber Co. Ltd. (JSTFCL). STL’s current shareholding in JSTFCL is 75%. Post acquisition of balance 25% stake, JSTFCL will become 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.
Acquisition of the remaining 25% of JSTFCL will ensure optical fiber supply security to support STL’s expanding optical fiber cable operations. The change in shareholding is subject to approval by China’s State Administration for Market Regulations and China’s State Administration of Foreign Exchange. Indicative time period for completion of the acquisition is 90 business days from signing the agreement.
Cost of acquisition or the price at which the shares are acquired is RMB 55.67 Mn (approx. INR 65 Cr)
JSTFCL was incorporated as a joint venture between STL and Jiangsu Tongguang Information Co. Ltd. in China in January 2011 to manufacture optical fiber.