In a move aimed at enhancing telecommunications services in Sri Lanka, Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited have inked an agreement to combine their operations in the neighbouring country.
Under the agreement, Dialog will acquire 100% of the issued shares in Airtel Lanka.
In exchange, Dialog will issue ordinary voting shares to Bharti Airtel, constituting 10.355% of Dialog’s total issued shares through a share swap.
The completion of this transaction is dependent upon the approval from Dialog’s shareholders and the fulfilment of specific conditions outlined in the Share Sale Agreement, including clearance from the Colombo Stock Exchange (CSE) and other relevant legal and regulatory procedures.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has already granted its approval for the proposed merger, highlighting its commitment to advancing telecommunications services across the nation.
This consolidation is expected to generate economies of scale, reduce infrastructure duplication, and achieve synergies in technology and capital expenditure.
Consequently, it will lead to improved high-speed broadband connectivity, voice and value-added services, cost savings, and operational efficiencies.
Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, highlighted that the merger aligns with Axiata’s strategy of market consolidation and resilience.
“The merger will create value for Shareholders of Dialog Axiata PLC and of Axiata Group through achievable synergies. We have the utmost respect for Airtel Lanka and its employees and look forward to working together as we integrate the two companies,” Sood said, through a statement on Thursday.
Gopal Vittal, MD & CEO of Bharti Airtel Limited, expressed confidence that customers would continue to benefit from cutting-edge services on a seamless network post-merger.
“We are happy to merge our Sri Lanka operations with Dialog. Given the scale and unique propositions they offer, we are certain that our customers will continue to enjoy cutting edge services on a seamless network,” Vittal said.
The merger marks a significant milestone in the telecommunications landscape of Sri Lanka, promising enhanced services and greater efficiency in meeting the evolving needs of customers and enterprises.
