Bharti Airtel and Dialog and Axiata Group reach a final deal to combine their Sri Lankan businesses

In order to consolidate their activities in Sri Lanka, Bharti Airtel, Dialog Axiata PLC (Dialog), and Axiata Group Berhad (Axiata) signed a final agreement on Thursday.

In accordance with the deal, Dialog will purchase all of the issued shares of Airtel Lanka. In exchange, Dialog will swap out ordinary voting shares for Bharti Airtel, making up 10.355% of Dialog’s total issued shares.

In an exchange filing, Bharti Airtel stated that the transaction is contingent upon the approval of Dialog’s shareholders and the fulfillment of certain requirements specified in the Share Sale Agreement, such as the Colombo Stock Exchange (CSE)’s clearance and the conclusion of other relevant corporate, legal, and regulatory compliance processes.

“We are pleased to combine Dialog with our Sri Lankan activities. Gopal Vittal, MD & CEO of Bharti Airtel, said, “We are confident that our customers will continue to enjoy cutting-edge services on a seamless network given their scale and unique propositions.”

According to Axiata Group Berhad’s Group CEO and Managing Director, Vivek Sood, the combination of Dialog and Airtel Lanka is consistent with Axiata’s resiliency and market consolidation strategy.

“Through attainable synergies, the merger will generate value for Dialog Axiata PLC and Axiata Group shareholders.” We look forward to collaborating with Airtel Lanka and its staff as we merge the two businesses, and we have the highest respect for them,” Sood said.

The planned merger has been approved by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), demonstrating the TRCSL’s commitment to promoting the use of telecommunications services across the country.

Through this consolidation, the combined company will be able to take advantage of economies of scale, cut down on redundant infrastructure, and create technological and capital expenditure synergies. These will improve voice, value-added, and high-speed broadband connectivity, as well as save money and run more efficiently.

The merger, according to Dr. Hans Wijayasuriya, CEO of Telecommunications Business and Group Executive Director of Axiata, combines the capabilities of two of the top telecommunication firms and is encouraging for the expansion and long-term viability of Sri Lanka’s flagship telecom industry.

“We look forward to the new frontiers in customer experience and innovation the company will deliver to Sri Lankan consumers and enterprises,” said Wijayasuriya.

“Director / Group Chief Executive Officer of Dialog Axiata PLC Supun Weerasinghe said, “It is a delight to welcome the team at Airtel Lanka to the Dialog family, and together we take a big step forward in our commitment to offering exceptional telecommunications services in Sri Lanka.”