Friday Nov 22, 2024
Friday Nov 22, 2024
Wednesday, 3 May 2023 00:45 - - {{hitsCtrl.values.hits}}
Axiata Group and Bharti Airtel yesterday announced plans to merge their operations Dialog and Airtel in Sri Lanka.
The parties have entered into a binding term sheet to combine operations of Bharti Airtel Lanka Ltd., Airtel’s wholly-owned subsidiary with Dialog, a subsidiary of Axiata Group Berhad.
“The proposed transaction envisages Airtel being granted a stake in Dialog, representing the fair value of Airtel Lanka. Airtel would accordingly be issued new shares in Dialog upon completion of the transaction,” the statement said.
It said discussions with respect to the proposed transaction are ongoing between the Parties and also with the relevant regulatory authorities as per applicable laws and regulations. The proposed transaction is subject to signing of definitive agreements and necessary closing conditions including applicable regulatory and shareholder approvals.
Further announcements will be made in due course should there be any material developments.
Dialog is the market leader in mobile whilst Airtel is considered number three in a market that includes SLT-Mobitel and Hutch.
Industry analysts have been long advocating consolidation within the telecom sector considered plagued by too many players. In the December 2022 ended quarter listed telecommunications sector suffered a downfall in net income by 226.8%YoY to a loss of Rs. 9.68 billion owing to the devaluation of the rupee that escalated operational costs due to tariff revision of mobile, broadband and pay TV by 20%, 20% and 25% respectively with effect from September 2022, in line with the approval granted by the Telecommunication Regulatory Commission of Sri Lanka according to First Capital.
Dialog Axiata Group, a subsidiary of Axiata Group Berhad (Axiata), operates Sri Lanka’s Leading Quad-Play Connectivity Provider.
Dialog Axiata PLC, listed on the Colombo Stock Exchange, supplements its market leading position in the Mobile Telecommunications sector with a robust footprint and market presence in Sri Lanka’s Fixed Telecommunications, Digital Pay Television, Digital Services, Financial Services, and IT services markets through its subsidiaries, Dialog Broadband Networks Ltd., (DBN), Dialog Television Ltd., (DTV), Digital Holdings Lanka Ltd., Dialog Finance PLC, and H One Ltd. Dialog Axiata Group is Sri Lanka›s largest Foreign Direct Investor (FDI) with investments totalling $ 3 billion.
Airtel Sri Lanka commenced commercial operations of services in Sri Lanka in 2009 and was the fastest operator to reach 1 million customers. The Airtel Sri Lanka offering of technology innovation and service excellence has driven rapid adoption rates among the Sri Lankan youth. Airtel has established its state-of-the-art 5G-ready 4G network across all parts of Sri Lanka, and is continuously boosting its network capacity to deliver maximum value.
