Subsidiary Ericsson Network Technologies (ENT) is selling its 27.5% shareholding to Universal Cables Limited and Bindhya Telelinks Limited.
“Universal Cables Limited (UCL) and Vindhya Telelinks Limited (VTL) have intimated the company that they have executed a Share Purchase Agreement (SPA) with Ericsson Network Technologies (ENT), AB for the acquisition of entire shareholding of ENT in the company,” Birla Ericsson Optical stated in a BSE filing.
UCL and VTL respectively held 13% and 13.33% stakes in the company at the end of March 2016.
"Ericsson had exited the cable business globally a few years back. In line with that strategy, it wanted to be out of this joint venture too. We were in discussion for this transaction for a while," an MP Birla group official reportedly told The Telegraph.
The proposed acquisition is expected to be complete by September 30, 2016.