Vindhya Telelinks and Universal Cables plan to acquire the entire shareholding of Swedish fiber optic cables maker Ericsson Network Technologies (ENT) in the joint-venture company Birla Ericsson Optical Ltd.
The share acquisition move of the Kolkata-based MP Birla Group came after Ericsson Network Technologies expressed its intention to dissolve the joint venture agreement.
Birla Ericsson Optical is a joint-venture of Vindhya Telelinks, Universal Cables, and Ericsson Network Technologies. The Swedish company holds 27.50 percent stake in BEOL, while VTL and UCL are the Indian promoters. The promoter presently holds 66.35 percent of the subscribed and fully paid-up equity share capital of Birla Ericsson Optical.
Universal Cables Limited and Vindhya Telelinks Limited have intimated the company that they have executed a share purchase agreement (SPA) with Ericsson Network Technologies for the acquisition of entire shareholding of ENT in the company, i.e., 8250,000 fully paid-up equity shares of '10 each (comprising 27.50 percent of total shareholding of the company) by the Indian ventures and/or other promoters/promoter group persons/entities of BEOL as designated by the Indian ventures.