Dialog Axiata plc, Axiata Group Berhad and Bharti Airtel Limited have signed a definitive agreement to combine their operations in Sri Lanka.
Under this agreement, Dialog will acquire 100 per cent of the issued shares in Airtel Lanka, in consideration of which Dialog will issue to Airtel, ordinary voting shares which will amount to 10.355 per cent of the total issued shares of Dialog by way of a share swap. However, 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.
Commenting on the development, Vivek Sood, group chief executive officer (CEO) and managing director (MD), Axiata Group Berhad, 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 shareholders of Dialog Axiata plc and of 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.”
Meanwhile, Dr Hans Wijayasuriya, CEO, telecommunications business and group executive director (ED), Axiata, 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.”
In addition, Gopal Vittal, MD and CEO, Airtel, 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.”
Further, Supun Weerasinghe, director and group CEO, Dialog Axiata plc, 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.”
Furthermore, Ashish Chandra, CEO, Bharti Airtel Lanka (Private) Limited, said, “The integration of Dialog and Airtel Lanka operations will unlock new opportunities for innovation and growth, and this will lead to benefit consumers.”
