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STL divests stake in UK-based Impact Data Solutions

Sterlite Technologies (STL) has announced its divestment of Impact Data Solutions, UK, as a part of its consolidated strategy to focus on its core business segments of optical solutions and global services.

September 27, 2022 9:24 IST | capital market
Impact Data Solutions (IDS) contributed to Rs 132.98 crore, representing 2.6% of consolidated turnover/revenue for the financial year 2021&8208;22. Its Net worth contributed to Rs 117 crore, amounting to 5.97% of consolidated net worth of STL for the financial year 2021&8208;22. In an exchange filing made post trading hours yesterday, STL said that its wholly owned subsidiary Sterlite Global Venture (Mauritius) (SGVML) has agreed to sell the entire stake (amounting to 80% of the entire share capital) held in Impact Data Solutions, UK (IDS UK), to Hexatronic Group AB (publ.), subject to regulatory approvals. The total consideration for SGVML for the proposed transaction will be divided into a component of initial consideration and an additional earnout consideration. The initial consideration would be an amount of British Pound Sterling (GBP) 9.6 million (subject to customary completion accounts adjustment), which will be received on completion. The additional earnout consideration, capped at a maximum amount of GBP 7.2 million will be determined based on the actual EBITDA performance of IDS UK for the calendar year ending 31st December 2022 which will be payable upon completion of the audit of IDS UK post completion of the transaction. Over the past few years, IDS has been operating in certain niche areas of the data-centre market, primarily inside-data-centre connectivity and containment solutions. This move will help IDS achieve future success and enable STL to strengthen its core business and balance sheet. Going forward, STL will continue to evaluate non-core assets and take prudent decisions to re-balance its portfolio and optimise capital allocation, the company said. Ankit Agarwal, MD, STL said, ?As we take our company towards focused growth in this decade of network creation, our efforts and capital allocation will be fully aligned towards optical and global services businesses.? Sterlite Technologies is a leading end-to-end solutions provider for global digital networks. On a consolidated basis, the company reported a net loss of Rs 20 crore in Q1 FY23 as against a net profit of Rs 116 crore in Q1 FY22. Revenue from operations rose 20.3% to Rs 1,575 crore in Q1 FY23 from Rs 1,309 crore posted in Q1 FY22. Shares of STL were down 0.03% to currently trade at Rs 159.45 on the BSE. Powered by Capital Market - Live News

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