Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited have agreed to merge their operations in Sri Lanka, a move that is believed to help advance the telecommunications in the country.
Under the Definitive Agreement, Dialog will acquire 100% of Airtel Lanka’s issued shares, while issuing Bharti Airtel ordinary voting shares equivalent to 10.355% of its total issued shares, resulting in a share swap.
The conclusion of this transaction will depend on the approval of Dialog's shareholders and meeting the specific criteria under the Share Sale Agreement, including obtaining clearance from the Colombo Stock Exchange (CSE) and complying with the necessary legal, corporate, and regulatory procedures.
Advancing Telecoms in Sri Lanka
Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, noted that the merger aligns with Axiata's aim to consolidate and strengthen its position in the market.
“The merger will create value for the shareholders of Dialog Axiata PLC and 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,” said Sood.
Meanwhile, the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has given the green light for the proposed merger, showcasing its commitment to promoting the advancement and adoption of telecoms services across the country.
“It is a privilege to welcome the team at Airtel Lanka to the Dialog family, and together we take a significant step forward in our commitment to delivering superior telecommunications services in Sri Lanka,” said Supun Weerasinghe, Director/Group Chief Executive of Dialog Axiata PLC.
The consolidation is expected to enable the merged company to gain economies of scale, making it easier to streamline infrastructure and capital expenditure (CapEx), which will result in improved high-speed broadband connectivity, enhanced voice and value-added services, significant cost reductions, and operational efficiencies.
Ashish Chandra, Chief Executive Officer, Bharti Airtel Lanka (Private) Limited, is optimistic about the significant improvement and new opportunities that the merger will unlock that will eventually benefit the consumers.