Bharti Airtel’s definitive agreement to merge its Sri Lanka unit into market leader Dialog Axiata through an all-stock deal has received approval from the Telecommunications Regulatory Commission of Sri Lanka (TRCSL).
Under the definitive agreement signed by Dialog Axiata, Axiata Group Berhad, and Bharti Airtel, Dialog will acquire 100% of the issued shares in Airtel Lanka. In consideration of the acquisition, Dialog will issue ordinary voting shares amounting to 10.355% of the total issued shares to Bharti Airtel by way of a share swap, the companies announced in a joint statement.
“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 cutting edge services on a seamless network,” said Gopal Vittal, MD & CEO – Bharti Airtel Limited.
The transaction is subject to the approval of Dialog’s shareholders pending 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.
“The merger between Dialog and Airtel Lanka is aligned to Axiata’s strategy of market consolidation 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.
Bharti Airtel and Dialog Axiata entered into a binding agreement to merge their operations in May 2023.
Dialog is the largest telecom service provider in Sri Lanka with more than 17 million subscribers as of 2021, representing around 51% of the market. Airtel Lanka has about 5 million subscribers.
