Dialog, Axiata Group and Bharti Airtel sign definitive deal for merger in SL

Friday, 19 April 2024 00:38 - - {{hitsCtrl.values.hits}}

Say combined strengths to deliver superior experience to customers and improve returns to shareholders
Dialog to acquire 100% of Airtel Lanka and Bharti Airtel will own 10.35% of Dialog via a share swap

Dialog Axiata PLC (Dialog), Axiata Group Berhad (Axiata) and Bharti Airtel Ltd., (Bharti Airtel) yesterday announced they have signed a Definitive Agreement to combine their operations in Sri Lanka.

Under this agreement, Dialog will acquire 100% of the issued shares in Airtel Lanka, in consideration of which Dialog will issue to Bharti Airtel, ordinary voting shares which will amount to 10.355% of the total issued shares of Dialog by way of a share swap. 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.

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 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 Berhad 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. We have the utmost respect for Airtel Lanka and its employees and look forward to working together as we integrate the two companies.”

Axiata CEO Telecommunications Business and Group Executive Director Dr. Hans Wijayasuriya said: “This 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. We look forward to the new frontiers in Customer Experience and innovation the company will deliver to Sri Lankan Consumers and Enterprises.”

Bharti Airtel Ltd., MD and CEO Gopal Vittal said: “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.”

Dialog Axiata PLC Director/Group Chief Executive Supun Weerasinghe said: “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.”

Bharti Airtel Lanka CEO Ashish Chandra said: “The integration of Dialog and Airtel Lanka operations will unlock new opportunities for innovation and growth, and this will lead to benefit consumers.”