By: Staff Writer
Colombo (LNW): Dialog Axiata Plc, Axiata Group Berhad and Bharti Airtel Limited have entered into a binding term sheet to combine operations of Bharti Airtel Lanka (Private) Limited, 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.
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, according to a corporate disclosure filed with the Colombo Stock Exchange.
The proposed transaction is subject to signing of definitive agreements and necessary closing conditions including applicable regulatory and shareholder approvals, it further said, adding that the parties involved will issue further announcements in due course should there be any material developments.
The deal is subject to the signing of definitive agreements and meeting necessary conditions, including regulatory and shareholder approvals,” the companies said.
They added that 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.
Dialog Axiata is Sri Lanka’s largest mobile network operator with 17.4 million subscribers, accounting for 57% of the country’s mobile market.
Airtel Lanka, one of the fastest-growing telecom service providers, has over 5 million customers and operates in 25 administrative districts.
It has a distribution network of over 50,000 retailers with 4G and 2G services present across major towns in Sri Lanka.
This announcement comes a day after Airtel announced a strategic partnership with Bridgepointe Technologies, a tech advisory firm assisting mid-market and enterprise companies in optimizing tech investments and business results.
This partnership enables US enterprises seeking to expand into India and Africa to leverage Airtel’s digital infrastructure solution.
“At Airtel, we have massive network investments, a strong product ecosystem and a large customer base, especially in India and Africa.
We are delighted to collaborate with Bridgepointe to extend our extensive suite of products to their customer base,” said Vani Venkatesh, CEO, Global Business, Bharti Airtel.
On Tuesday, shares of Bharti Airtel ended at 1.14% lower at ₹790.20 apiece on the National Stock Exchange.
