New Delhi: Optical and digital solutions company Sterlite Technologies has received approval from shareholders and creditors for the 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 percent approval from secured and unsecured creditors and 99.98 percent approval from shareholders through the voting process.
The voting results reflected resounding confidence in the growth potential and value creation of Sterlite Technologies Ltd (STL), the company said.
"STL... today announced that it has achieved a significant milestone towards the demerger of its Global Services Business (GSB), upon receiving approval from its shareholders and secured and unsecured creditors," according to a company filing to the BSE. .
The approval sets the stage for shares of the new business to be listed separately.
The spin-off will allow both businesses (STL and the new Global Services entity) to grow independently with greater agility and focus, creating strong and distinct platforms to achieve their objectives.
This will also bring more value to investors and strategic partners who have a specific interest in the global services business, the company said.
No economic interest of any shareholder of the demerged company would change after the demerger. The process of obtaining approval from the National Company Law Tribunal (NCLT) will be completed within an indicative period of 2-3 months.
STL said the global services business has brought substantial value to its clients over the past decade.
With its ability to create digital ecosystems driven by automation, the company has made significant progress in India and the United Kingdom.
"It has been an important part of India's digital growth story, combining the spirit of nation-building and digital infrastructure creation with automation. More than 1.35 lakh kilometers of fiber optic network have been deployed across the country in 23 states, positioning STL as a trusted supplier partner to offer critical optical solutions," the statement said.
Ankit Agarwal, CEO of STL, called the approval of the demerger by shareholders and creditors "a critical 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 efficiency. This will strengthen their position in the relevant markets, resulting in more sustainable growth in the long term," Agarwal said.
According to the company, the demerger proposal received 100 percent approval from secured and unsecured creditors and 99.98 percent approval from shareholders through the voting process.
The voting results reflected resounding confidence in the growth potential and value creation of Sterlite Technologies Ltd (STL), the company said.
"STL... today announced that it has achieved a significant milestone towards the demerger of its Global Services Business (GSB), upon receiving approval from its shareholders and secured and unsecured creditors," according to a company filing to the BSE. .
The approval sets the stage for shares of the new business to be listed separately.
The spin-off will allow both businesses (STL and the new Global Services entity) to grow independently with greater agility and focus, creating strong and distinct platforms to achieve their objectives.
This will also bring more value to investors and strategic partners who have a specific interest in the global services business, the company said.
No economic interest of any shareholder of the demerged company would change after the demerger. The process of obtaining approval from the National Company Law Tribunal (NCLT) will be completed within an indicative period of 2-3 months.
STL said the global services business has brought substantial value to its clients over the past decade.
With its ability to create digital ecosystems driven by automation, the company has made significant progress in India and the United Kingdom.
"It has been an important part of India's digital growth story, combining the spirit of nation-building and digital infrastructure creation with automation. More than 1.35 lakh kilometers of fiber optic network have been deployed across the country in 23 states, positioning STL as a trusted supplier partner to offer critical optical solutions," the statement said.
Ankit Agarwal, CEO of STL, called the approval of the demerger by shareholders and creditors "a critical 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 efficiency. This will strengthen their position in the relevant markets, resulting in more sustainable growth in the long term," Agarwal said.
