Airtel Lanka to merge with Dialog Axiata in Sri Lanka

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ET BureauLast Updated: May 02, 2023, 05:12 PM IST

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In a release issued Tuesday, the companies said discussions with respect to the proposed merger are ongoing between the two parties and with relevant regulatory authorities.

Airtel Lanka to merge with Dialog Axiata in Sri Lanka — Experts said the merger will help Airtel Lanka get access to a larger user base.

Bharti Airtel and Dialog Axiata said they have entered into a binding term sheet to combine the operations of Bharti Airtel Lanka (Bharti's subsidiary in Sri Lanka) and Dialog, a subsidiary of Malaysia-based telecom provider, Axiata.

In a release issued Tuesday, the companies said discussions with respect to the proposed merger are ongoing between the two parties and with relevant regulatory authorities.

ET reported that the two companies are in talks of combining operations in 2016, in line with the company's merger with Axiata's Bangladesh arm.

In Tuesday's statement, Bharti said it envisages Airtel being granted a stake in Dialog, representing the fair value of Airtel Lanka. The company will accordingly be issued new shares in Dialog upon completion of the transactions.

Dialog is Sri Lanka's largest telecom provider. Experts said the merger will help Airtel Lanka get access to a larger user base.

"The proposed transaction is subject to signing of definitive agreements and necessary closing conditions including applicable regulatory and shareholder approvals," Bharti said.

Tuesday, 02 May, 2023

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