Dialog, Axiata Group and Bharti Airtel to Merge Operations in Sri Lanka
By Ying Xian Wong
Axiata Group, its subsidiary Dialog Axiata as well as Bharti Airtel have agreed to combine their Sri Lanka operations.
Dialog is set to acquire 100% of Airtel Lanka's issued shares, and in exchange Dialog will issue new ordinary voting shares to Bharti Airtel through a share swap, which will amount to 10.355% of Dialog's issued shares, the three companies said on Thursday.
The deal is subject to approval from Dialog's shareholders and meeting specific conditions outlined in agreement, including clearance from the Colombo Stock Exchange and other compliance-related procedures, they added.
The proposed merger give the combined entity economies of scale and reduce duplication of infrastructure, the companies said. They added that it will also achieve synergies in technology and capital expenditure, resulting in improved high-speed broadband connectivity, voice and value-added services, as well as cost savings and operational efficiencies.
"The merger between Dialog and Airtel Lanka is aligned to Axiata's strategy of market consolidation and resilience.", Vivek Sood, chief executive and managing director of Axiata Group said. The merger is expected to generate value for shareholders of both Dialog and Axiata Group through achievable synergies, he added.
"The integration of Dialog and Airtel Lanka operations will unlock new opportunities for innovation and growth, and this will lead to benefit consumers," Ashish Chandra, Bharti Airtel Lanka (Private) Ltd. chief executive said.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
April 18, 2024 01:30 ET (05:30 GMT)
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