19 April 2024 12:00 am Views - 287
Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited signed a Definitive Agreement to combine their operations in Sri Lanka.
“TRCSL has granted its approval for the proposed merger, underscoring its vision to advance the adoption of telecommunications services across Sri Lanka,” the statement said.
The formal announcement made yesterday highlighted that under this agreement, Dialog will acquire 100 percent 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 percent of the total issued shares of Dialog by way of a share swap. 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 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.
“The merger between Dialog and Airtel Lanka is aligned to Axiata’s strategy of market consolidation and resilience.
The merger will create value for the shareholders of Dialog Axiata PLC and 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, Axiata Group Berhad CEO and Managing Director Vivek Sood said.
“We look forward to the new frontiers in customer experience and innovation the company will deliver to Sri Lankan consumers and enterprises,” Axiata CEO (Telecommunications Business) and Group Executive Director Dr. Hans Wijayasuriya said commenting on the merger.
Meanwhile, Bharti Airtel Limited MD & CEO Gopal Vittal noted that given the scale and unique propositions Dialog offer, Airtel is certain that its customers will continue to enjoy cutting edge services on a seamless network.