09 Nov Expect all approvals for Optotec buyout by December-January: STL Group CEO
NEW DELHI: Digital networks integrator Sterlite Technologies Ltd (STL) expects to receive all statutory approvals for its planned acquisition of Italy-based Optotec by December-January, STL Group CEO Anand Agarwal said.
The company recently announced that it will acquire Optotec, an optical interconnect products company, at an enterprise value of 29 million euros (over Rs 250 crore).
Of this, about 60-70 per cent (up to Rs 150-175 crore) would be funded by way of foreign currency debt instruments, and rest via internal accruals, Agarwal told PTI.
“About 30-40 per cent would be internal accruals and balance would be debt….Since we have a lot of revenue as well as cash flow happening within Europe, we will be taking debt under the European entity,” he said.
This could be in the form of 3-5 year term instruments, he said.
Agarwal further said that he expects all approvals to come through by December-January.
The deal involves acquisition of 100 per cent of Optotec’s shareholding on closing.
Optotec, a privately-held company, provides a range of optical interconnect products for telecommunication, FTTH (Fibre to the Home) and cloud networks in Europe.
Optotec has a portfolio that would compliment STL’s ‘Opticonn’ offering of optical fibre and cables for an integrated products portfolio, the company had earlier said.
Announcing the deal on November 2, STL had said that Optotec comes with a strong legacy in optical interconnect portfolio and shares long-standing relationships with marquee European telecom operators.
“The acquisition will create a solid springboard to offer a complete bouquet of solutions to customers across Europe, India and the Middle East,” STL had said.
With its portfolio spanning optical fibre and cables, network design and deployment as well as network software, Pune-based STL positions itself as an integrated solutions provider for global data networks, with optical preform, fibre and cable manufacturing facilities in India, Italy, China and Brazil.