In Short:
Bharti Airtel has signed an agreement to merge its operations in Sri Lanka with Axiata group and Dialog. Dialog will acquire 100% of Airtel Lanka’s shares, with Bharti Airtel receiving ordinary voting shares in Dialog. The merger is subject to approval from Dialog’s shareholders and regulatory authorities. The companies believe the merger will result in synergies, cost savings, and improved services for customers in Sri Lanka.
Bharti Airtel Signs Agreement to Combine Operations with Axiata Group and Dialog in Sri Lanka
Bharti Airtel announced on Thursday that the company has signed a definitive agreement to combine its operations with Axiata group and Dialog in Sri Lanka. The merger includes Dialog’s acquisition of 100% of the issued shares in Airtel Lanka, with Dialog issuing ordinary voting shares amounting to 10.355% of the total issued shares of Dialog to Bharti Airtel.
Approval Process
The transaction is subject to the approval of Dialog’s shareholders and completion of specific conditions outlined in the share sale agreement, including clearance from the Colombo Stock Exchange (CSE) and other regulatory procedures. The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has already granted approval for the proposed merger.
Statements from Key Executives
Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, stated that the merger aligns with Axiata’s strategy of market consolidation and resilience, creating value for shareholders through achievable synergies. Gopal Vittal, MD & CEO of Bharti Airtel, expressed optimism about the merger and the seamless network experience it will provide to customers.
Supun Weerasinghe, Group Chief Executive Officer of Dialog Axiata PLC, emphasized the significance of the merger in delivering superior telecommunication services in Sri Lanka.
Benefits of the Merger
The amalgamation of operations between Dialog and Airtel Lanka is expected to bring about economies of scale, reduce duplication of infrastructure, achieve synergies in technology and capital expenditure, enhance high-speed broadband connectivity, and improve voice and value-added services. It will also result in cost savings and operational efficiencies.
Ashish Chandra, Chief Executive Officer of Bharti Airtel Lanka, highlighted that the integration of operations will unlock new opportunities for innovation and growth, ultimately benefiting consumers.
