Sterlite Technologies (STL) has signed the definitive agreement to acquire balance 25% stake in Jiangsu Sterlite Tongguang Fiber Co. (JSTFCL) for cash consideration of RMB 55.67 million (approx. Rs 65 crore). 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.
The acquisition will ensure optical fiber supply security to support STL's expanding optical fiber cable operations.
STFCL was incorporated as a joint venture between STL and Jiangsu Tongguang Information Co. in China in January 2011 to manufacture optical fiber.
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