Dialog Axiata and Bharti Airtel will combine its businesses in Lanka

In an equity exchange agreement, telecom provider Bharti Airtel will combine its operations in Sri Lanka with Dialog Axiata, the companies said in a joint statement on Thursday. 2009 saw the start of Airtel Sri Lanka’s commercial service operations in Sri Lanka.

An official agreement was signed by Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited to merge their businesses in Sri Lanka, according to the release.

As per the terms of the agreement, Dialog will purchase all of the issued shares of Airtel Lanka. In exchange, Dialog will provide Bharti Airtel with ordinary voting shares, which will constitute 10.355% of Dialog’s total issued shares through share swapping.

Axiata Group Berhad’s Group CEO and Managing Director, Vivek Sood, stated: “Axiata’s strategy of market consolidation and resilience is aligned with the merger between Dialog and Airtel Lanka.” We are eager to collaborate with Airtel Lanka and its staff as we merge the two businesses since we have the highest regard for them.

The completion of certain requirements listed in the Share Sale Agreement, such as clearance from the Colombo Stock Exchange (CSE) and other relevant legal, corporate, and regulatory compliance processes, is contingent upon the transaction’s approval by Dialog’s shareholders.