Bharti Airtel to merge Lanka operations with Dialog Axiata

Chandigarh, April 18

Telecom operator Bharti Airtel will merge its Sri Lanka operations with Dialog Axiata in an equity swap deal, a joint statement said on Thursday. Airtel Sri Lanka commenced commercial operations of services in Sri Lanka in 2009.

“Dialog Axiata PLC, Axiata Group Berhad and Bharti Airtel Limited, signed a definitive agreement to combine their operations in Sri Lanka,” the statement said.

Under this agreement, Dialog will acquire 100 per cent 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 per cent of the total issued shares of Dialog by way of a share swap, according to the statement.

Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, said, “The merger between Dialog and Airtel Lanka is aligned to Axiata’s strategy of market consolidation and resilience. We have the utmost respect for Airtel Lanka and its employees and look forward to working together as we integrate the two companies”.

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.