(MENAFN- IANS) New Delhi, April 18 (IANS) Dialog Axiata PLC (Dialog), Axiata Group Berhad (Axiata) and Bharti Airtel have signed an 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 Bharti 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, the companies said in a statement.
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 statement said.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has granted its approval for the proposed merger.
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.
Gopal Vittal, MD & CEO Bharti Airtel Limited, 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.”
Vivek Sood, Group CEO and Managing Director of 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.”
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