Dialog, Axiata and Bharti Airtel to merge operations

New Delhi: Dialog Axiata PLC (Dialog), Axiata Group Berhad (Axiata) and Bharti Airtel have signed an agreement to combine their operations in Sri Lanka.

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, the companies said in a statement.

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, the statement said.

The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has granted its approval for the proposed merger.

This consolidation will enable the merged entity to garner economies of scale and reduce duplication of infrastructure, achieve synergies in technology and capital expenditure leading to enhanced high-speed broadband connectivity, voice and value-added services, cost savings and operational efficiencies.