Axiata, Dialog, Bharti Airtel to merge operations in Sri Lanka
Published on: Thursday, April 18, 2024
By: Bernama
The Dialog Axiata PLC and Airtel Lanka merger will create value for the shareholders of Dialog and Axiata Group, says Axiata Group CEO and managing director Vivek Sood. (Axiata pic)
PETALING JAYA: Axiata Group Bhd, Dialog Axiata PLC, and Bharti Airtel Ltd signed a definitive agreement today to combine their operations in Sri Lanka, including the acquisition of the entire issued shares of Bharti Airtel Lanka (Pte) Ltd.
In a joint statement, the companies announced that Dialog will acquire 100% of the issued shares in Airtel Lanka, a wholly-owned subsidiary of Bharti Airtel, by issuing ordinary voting shares amounting to 10.355% of its total issued shares to Bharti Airtel.
ADVERTISEMENT
“The transaction is subject to the approval of Dialog’s shareholders and pending completion of specific conditions outlined in the share sale agreement.
“These include clearance from the Colombo Stock Exchange (CSE) and completion of other applicable legal, corporate, and regulatory compliance procedures,” the statement said.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has granted its approval for the proposed merger, underscoring its vision to advance the adoption of telecommunications services across Sri Lanka.
“This consolidation will enable the merged entity to garner economies of scale, reduce duplication of infrastructure, achieve synergies in technology and capital expenditure, leading to enhanced high-speed broadband connectivity, voice and value-added services, cost savings, and operational efficiencies,” the statement said.
ADVERTISEMENT
Axiata Group CEO and managing director (MD) Vivek Sood said the merger between Dialog and Airtel Lanka aligns with Axiata’s strategy of market consolidation and resilience.
“The merger will create value for the shareholders of Dialog Axiata PLC and Axiata Group through achievable synergies.
ADVERTISEMENT
“We have the utmost respect for Airtel Lanka and its employees and look forward to working together as we integrate the two companies,” he said.
Meanwhile, Bharti Airtel MD and CEO Gopal Vittal expressed confidence in Dialog’s scale and unique propositions, assuring customers that they will continue to enjoy cutting-edge services on a seamless network.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
