Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited, collectively referred to as “the Parties,” have officially signed a Definitive Agreement to merge their operations in Sri Lanka. This agreement entails Dialog acquiring 100% of Airtel Lanka’s issued shares. In exchange, Dialog will issue ordinary voting shares to Bharti Airtel, amounting to 10.355% of Dialog’s total issued shares through a share swap. However, the transaction is contingent upon approval from Dialog’s shareholders and meeting specific conditions outlined in the Share Sale Agreement, including clearance from the Colombo Stock Exchange (CSE) and fulfillment of other legal, corporate, and regulatory compliance requirements.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has granted approval for the proposed merger, emphasizing its commitment to advancing the telecommunications sector across the country.
This consolidation is poised to bring about various benefits, including economies of scale, reduction of infrastructure duplication, synergies in technology and capital expenditure, enhanced high-speed broadband connectivity, voice and value-added services, cost savings, and operational efficiencies.
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, aiming to create value for Dialog Axiata PLC shareholders and Axiata Group by realizing synergies. Dr. Hans Wijayasuriya, CEO Telecommunications Business and Group Executive Director of Axiata, emphasized the merger’s positive impact on the growth and sustainability of Sri Lanka’s telecom sector, anticipating new frontiers in customer experience and innovation.
Gopal Vittal, MD & CEO of Bharti Airtel Limited, expressed contentment with merging Sri Lanka operations with Dialog, foreseeing continued delivery of cutting-edge services to customers on a seamless network.
Supun Weerasinghe, Director/Group Chief Executive Officer of Dialog Axiata PLC, welcomed Airtel Lanka’s team to the Dialog family, highlighting the significant step forward in delivering superior telecom services in Sri Lanka.
Ashish Chandra, Chief Executive Officer of Bharti Airtel Lanka (Private) Limited, anticipated that the integration of Dialog and Airtel Lanka operations would unlock new opportunities for innovation and growth, ultimately benefiting consumers.
