Bharti Airtel, Dialog Axiata, and Axiata Group to Merge Operations in Sri Lanka

The integration of Dialog and Airtel Lanka operations is expected to enable the merged entity to garner economies of scale, reduce duplication of infrastructure and more.

Highlights

  • Dialog to acquire 100 percent of Airtel Lanka's issued shares in exchange for ordinary voting shares.
  • Regulatory approval granted by the Telecommunications Regulatory Commission of Sri Lanka.
  • Merger aims to bring together strengths for growth and innovation in Sri Lanka's telecom sector.

Follow Us

Bharti Airtel, Dialog Axiata, and Axiata Group to Merge Operations in Sri Lanka
Bharti Airtel announced on Thursday that the telecom company has signed a definitive agreement with Dialog Axiata (Dialog) and Axiata Group (Axiata) to merge operations in Sri Lanka. Dialog Axiata, a subsidiary of Axiata Group, operates Sri Lanka's Quad-Play Connectivity Service Provider.

Agreement and Acquisition

Under this agreement, Dialog will acquire 100 percent of the issued shares in Airtel Lanka. In consideration of this acquisition, Dialog will issue ordinary voting shares to Bharti Airtel, amounting to 10.355 percent of the total issued shares of Dialog, through a share swap, Bharti Airtel said in a statement.




Airtel and Dialog Axiata first announced plans to combine operations in Sri Lanka in May 2023. 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 Exchange filing said.

Also Read: Sri Lankan Mobile Operators Commercially Launch Three Open Gateway Network APIs

Regulatory Approvals

The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has granted its approval for the proposed merger, "underscoring its vision to advance the adoption of telecommunications services across Sri Lanka."

Axiata Group Berhad said, "The merger between Dialog and Airtel Lanka is aligned with Axiata’s strategy of market consolidation and resilience. The merger will create value for shareholders of Dialog Axiata PLC and 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.”

Axiata added, "This merger brings together the strengths of two leading telco groups and bodes well for the growth and sustainability of Sri Lanka’s flagship Telecom Sector. We look forward to the new frontiers in Customer Experience and innovation the company will deliver to Sri Lankan Consumers and Enterprises."

Commenting on the merger, Bharti Airtel said, "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."

Future Prospects

The integration of Dialog and Airtel Lanka operations is expected to enable the merged entity to garner economies of scale, 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.

Reported By

Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

Recent Comments

Faraz :

I mean 75 Mbps is more than enough.. so Disney+ subscription one looks better.

BSNL Upgrades Data and Speed Benefits with Rs 599 Broadband…

TheAndroidFreak :

Airtel wants 300 INR ARPU from 4G customers and 500 INR ARPU from 5G customers. So 2999 doesn't make sense.…

Vodafone Idea CEO Believes in Paying More for Using More

TheAndroidFreak :

Let's see. Just few days before we see 4999 from Airtel for yearly pack.

Vodafone Idea CEO Believes in Paying More for Using More

Faraz :

Other than some additional benefits, their plan structure as well as price stays same as Airtel. ( Except for 2999…

Vodafone Idea CEO Believes in Paying More for Using More

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments