NEW DELHI, July 12: Optical and digital solutions company Sterlite Technologies has received approval from shareholders and creditors for demerger of its global services business, paving the way for shares of the new business to be listed separately.
According to the company, the demerger proposal received 100 per cent approval from both secured and unsecured creditors and 99.98 per cent from equity shareholders through the voting process.
The voting results reflected a resounding confidence in growth potential and value creation of Sterlite Technologies Ltd (STL), the company said.
“STL…Today announced that it has achieved a significant milestone towards its Global Services Business (GSB) demerger, receiving approval from its shareholders and secured and unsecured creditors,” according to a BSE filing by the company.
The approval sets the stage for shares of the new business to be listed separately.
The demerger will enable both the businesses — 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, the company said.
No economic interest of any shareholder of the demerged company would change post-demerger. The process of getting approval from the National Company Law Tribunal (NCLT) will be completed in an indicative timeline of 2-3 months.
STL said that 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.
“It 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 kilometres of optical fibre network have been deployed across the country in 23 states, positioning STL as a trusted partner for delivering critical optical solutions,” the release said.
Ankit Agarwal, Managing Director of STL, termed the shareholders’ and creditors’ approvals for the demerger “a pivotal milestone”.
“This reflects their strong belief in our strategic vision and growth potential.
“This demerger will lead to better alignment of the respective businesses with their customers and improve competitiveness and operational efficiencies. This will strengthen their position in the relevant marketplaces, resulting in more sustainable long-term growth,” Agarwal said. (PTI)
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