Axiata Group Bhd’s Sri Lankan unit Dialog Axiata PLC will acquire rival telco Airtel Lanka from Bharti Airtel Limited in exchange for 10.355% of the total issued shares in Dialog.
According to a joint statement, the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has granted its approval for the proposed merger between Dialog Axiata, the operator of Sri Lanka’s leading quad-play connectivity provider, and Airtel Lanka, which offers 5G-ready 4G network across the country.
The parties said the transaction is subject to the approval of Dialog’s shareholders and is pending the completion of specific conditions outlined in the share sale agreement, including clearance from the Colombo Stock Exchange (CSE) and completion of other applicable legal, corporate and regulatory compliance procedures.
“This consolidation will enable the merged entity to garner economies of scale and 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.”
Axiata group CEO and managing director Vivek Sood said the merger between Dialog and Airtel Lanka is aligned to 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,” he added.
Meanwhile, Axiata CEO of telecommunications business and group executive director Hans Wijayasuriya said the merger brings together the strengths of two leading telco groups and bodes well for the growth and sustainability of Sri Lanka’s flagship telecom sector.
In a joint statement on Thursday, telecom operator Bharti Airtel said that it will merge its Sri Lanka operations with Dialog Axiata in an equity swap deal.
As of 12.30 pm, Bharti Airtel shares were trading at Rs 1,273, up 4.65 percent from the previous day’s closing.
Airtel Lanka’s turnover in financial year 2023 was Rs 294 crore and it contributed 0.21 per cent to Bharti Airtel’s overall business.
Dailog Axiata has a subscriber base of over 17 million. Airtel Lanka has over 5 million customers.
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