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Bharti Airtel Announced Merger For Sri Lanka Business

18 April 20243 mins read by Angel One
Bharti Airtel Limited, Dialog Axiata PLC, and Axiata Group Berhad came together to enhance telecommunication services in Sri Lanka.
Bharti Airtel Announced Merger For Sri Lanka Business
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On April 18, 2024, Bharti Airtel Limited (Bharti Airtel), Dialog Axiata PLC (Dialog), and Axiata Group Berhad (Axiata) entered into a Definitive Agreement to combine their operations in Sri Lanka. As per the terms of the agreement, Dialog will acquire 100% 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% of the total issued shares of Dialog by way of a share swap.

The said merger is subject to certain approval, which includes Dialog’s shareholders’ approval and other specific conditions outlined in the Share Sale Agreement. These include clearance from the Colombo Stock Exchange (CSE) and completion of other applicable legal, corporate, and regulatory compliance procedures.

The company further stated that the proposed merger has been approved by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), which is fueling the vision to advance the adoption of telecommunications services across Sri Lanka.

This consolidation will enable the merged entity to garner economies of scale and reduce infrastructure duplication. It will also achieve synergies in technology and capital expenditures, 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 consolidaƟon and resilience. The merger will create value for Shareholders of Dialog Axiata PLC and of 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,” said Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad.

“This merger brings together the strengths of two leading telco groups and bodes well for the Growth and Sustainability of Sri Lanka’s flagship Telecom Sector. We look forward to the new frontiers in Customer Experience and innovation the company will deliver to Sri Lankan Consumers and Enterprises,” said Dr Hans Wijayasuriya, CEO of Telecommunications Business and Group Executive Director of Axiata.

“We are happy to merge our Sri Lanka operations with Dialog. Given the scale and unique propositions they offer, we are certain that our customers will continue to enjoy cuƫng edge services on a seamless network,” said Gopal Vittal, MD & CEO of Bharti Airtel Limited

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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