Ericsson sells optical fibre JV stake
13 July 2016 | Jason McGee-Abe
Ericsson is exiting its optical fibre joint venture Birla Ericsson Optical by divesting its entire stake to two other promoter group entities.
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.
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