Stock Report

Sterlite Technologies Ltd's arm to sell its 40% stake in China JV

Posted On : 2023-11-29 12:54:36( TIMEZONE : IST )

Sterlite Technologies Ltd's arm to sell its 40% stake in China JV

Metallurgica Bresciana S.p.A., Italy ("MB") (a wholly owned subsidiary of the Sterlite Technologies Limited (STL), has agreed to sell its 40% of outstanding shares held in Metallurgica Bresciana Maanshan Special Cable Ltd., China ("MB Manshaan") ("Proposed Transaction"), subject to regulatory approvals, if any.

For this purpose, MB and MB Manshaan have entered into definitive documents with the relevant parties to record the terms and conditions of the Proposed Transaction and related matters.

MB Manshaan (associate entity) is a 40% joint venture of MB, a wholly owned subsidiary company of STL. Accordingly, the Equity Method of Accounting is applicable, wherein MB's share of profits in MB Manshaan is consolidated at STL level. MB Maanshan's contribution to STL's consolidated profit for the FY 23 was INR 4.40 crores, which translates to 1.40% of the total consolidated profit before exceptional items and tax of STL.

The consideration to be received for the above sale is Euro 5,950,000 (Euro 5.95 million), which will be received in a phased manner as follows:

- Euro 1.91 million to be received upon fulfilment of conditions; and

- Balance amount Euro 4.04 million to be received within 11 months from the Signature Date.

Shares of Sterlite Technologies Limited was last trading in BSE at Rs. 157.15 as compared to the previous close of Rs. 155.05. The total number of shares traded during the day was 115005 in over 1831 trades.

The stock hit an intraday high of Rs. 158.85 and intraday low of 153.00. The net turnover during the day was Rs. 17991810.00.

Source : Equity Bulls


SterliteTechnologies INE089C01029 StakeSale JV China