Axiata unit to acquire Airtel Lanka via share swap deal
Axiata Group Bhd’s Sri Lanka subsidiary Dialog Axiata Plc plans to acquire Bharti Airtel Lanka (Private) Ltd (Airtel Lanka) from Bharti Airtel Ltd in exchange for a 10.355 per cent interest in Dialog.
Under the share swap deal, Dialog will acquire 100 per cent the issued shares in Airtel Lanka, in consideration of which Dialog will issue to Bharti Airtel the equivalent of 10.355 per cent of the enlarged total issued shares of Dialog.
The transaction is subject to the approval of Dialog’s shareholders and is pending the completion of specific conditions outlined in the definitive agreements, including clearance from the Colombo Stock Exchange (CSE) and completion of other regulatory compliance procedures.
Dialog is listed on the CSE and is the market leader in mobile, digital pay television, fixed telecommunications and international services sectors.
It is also Sri Lanka's largest foreign direct investor with investments totalling US$3.25 billion.
Airtel Sri Lanka started commercial services in Sri Lanka in 2009 and was the fastest operator to reach one million customers.
Axiata group chief executive officer (CEO) and managing director Vivek Sood said the merger aligned with its strategy of market consolidation and resilience.
The merger will create value for Dialog shareholders and Axiata through achievable synergies.
Bharti Airtel managing director
and CEO Gopal Vittal said the company was happy to merge its Sri Lanka operations with that of Dialog’s.
“Given the scale and unique propositions they offer, we are certain that our customers will continue to enjoy cutting-edge services on a seamless network.”