Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited, collectively known as “the Parties,” have officially signed a Definitive Agreement to merge their operations in Sri Lanka. According to the agreement, Dialog will acquire 100% of the issued shares in Airtel Lanka. 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. The completion of this transaction is subject to approval from Dialog’s shareholders and the fulfillment of specific conditions outlined in the Share Sale Agreement, including clearance from the Colombo Stock Exchange (CSE) and compliance with legal, corporate, and regulatory procedures.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has already granted approval for the proposed merger, emphasizing its commitment to advancing telecommunications services across the country.
This consolidation is expected to yield significant benefits for the merged entity, including economies of scale, reduced duplication of infrastructure, synergies in technology and capital expenditure, enhanced broadband connectivity, voice and value-added services, cost savings, and operational efficiencies.
Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, expressed alignment with Axiata’s strategy of market consolidation and resilience. He emphasized the creation of value for Dialog Axiata PLC and Axiata Group shareholders through achievable synergies, while also expressing respect for Airtel Lanka and its employees.
Dr. Hans Wijayasuriya, CEO Telecommunications Business and Group Executive Director of Axiata, highlighted the merger’s potential to strengthen Sri Lanka’s flagship Telecom Sector, bringing together the strengths of two leading telco groups and paving the way for enhanced customer experience and innovation.
Gopal Vittal, MD & CEO of Bharti Airtel Limited, expressed satisfaction with merging Sri Lanka operations with Dialog, foreseeing continued delivery of cutting-edge services on a seamless network to customers.
Supun Weerasinghe, Group Chief Executive of Dialog Axiata PLC, welcomed the team at Airtel Lanka to the Dialog family, emphasizing the commitment to delivering superior telecommunications services in Sri Lanka through this significant step forward.
Ashish Chandra, Chief Executive Officer of Bharti Airtel Lanka (Private) Limited, noted that the integration of Dialog and Airtel Lanka operations would unlock new opportunities for innovation and growth, ultimately benefiting consumers.
