Sterlite Technologies rose 4.12% to Rs 302.50 at 11:09 IST on BSE after the company said one of its subsidiaries will acquire a European specialised optical cable manufacturer for 47 million euros in an all-cash deal.
The announcement was made after market hours on Friday, 6 July 2018.Meanwhile, the S&P BSE Sensex was up 162.53 points, or 0.46% to 35,820.39.
On the BSE, 2.69 lakh shares were traded in the counter so far compared with average daily volumes of 1.55 lakh shares in the past two weeks. The stock had hit a high of Rs 308.50 and a low of Rs 296.60 so far during the day. The stock hit a record high of Rs 414.50 on 24 January 2018. The stock hit a 52-week low of Rs 155.15 on 7 July 2017.
Sterlite Technologies announced the signing of definitive agreements for acquisition of a European specialized optical cable manufacturer based in Italy. Sterlite Tech, through its wholly owned Italian subsidiary Sterlite Technologies S.p.A, will acquire 100% stake in Metallurgica Bresciana S.p.A (Metallurgica).
Metallurgica designs and manufactures special precision optical fiber cables and specialized copper cables for various communication applications. The target firm is a privately held company focused on bringing specialised cabling solutions for various network applications across industry segments.
The acquisition is an all cash deal for approximately Euro 47 million, which is being funded through a combination of Euro debt instruments and internal accruals. Metallurgica reported a revenue of Euro 48.7 million and net income of Euro 4.2 million at the close of CY17. The transaction is EPS accretive from day one and the deal is expected to be closed in the coming two weeks.
The acquisition will significantly expand Sterlite Tech's market presence in Europe. It will bring new tier-1 customers, augment product portfolio, and enhance flexibility and ability to better serve the European market.
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On a consolidated basis, net profit of Sterlite Technologies rose 73.53% to Rs 119.16 crore on 20.86% rise in net sales to Rs 846.64 crore in Q4 March 2018 over Q4 March 2017.
Sterlite Technologies is a global technology leader that designs, builds and manages smarter digital networks. Sterlite Tech engages with customers in more than 100 countries, with a digital web-scale offering across products, services and software.
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