STL's Global Services Business Demerger Approved by Shareholders

STL (NSE: STLTECH) has received shareholder and creditor approval for the demerger of its Global Services Business (GSB). This approval allows for the independent listing of the new business entity. The demerger aims to enhance agility, focus, and value creation for both STL and GSB, benefiting investors and strategic partners.

STL (NSE: STLTECH), a leading optical and digital solutions company, has achieved a major milestone towards the demerger of its Global Services Business (GSB) after receiving overwhelming approval from shareholders and creditors. This move will facilitate the separate listing of the new business entity.

At the National Company Law Tribunal (NCLT) convened meetings on 10 July 2024, the demerger proposal earned unanimous approval from both secured and unsecured creditors, and a near-unanimous 99.98% endorsement from equity shareholders. The voting results underscore the confidence in STL's growth potential and value creation.

Over the past decade, STL's Global Services Business has delivered substantial value to customers, thanks to its automation-led digital ecosystem. With significant impacts in India and the UK, the business has played a crucial role in India's digital expansion, deploying over 1.35 lakh km of Optical Fibre network across 23 states. This demerger will allow STL and the new Global Services entity to operate more independently, thus enhancing their growth potential and operational efficiencies.

Ankit Agarwal, Managing Director of STL, expressed gratitude towards shareholders and creditors for their support, calling the approvals a crucial milestone. He highlighted that the demerger aligns both businesses better with their markets, boosting competitiveness and fostering sustainable long-term growth.

(With inputs from agencies.)