Dialog Axiata, Axiata Group, and Bharti Airtel have signed a binding term sheet to combine the operations of Airtel's wholly-owned subsidiary in Sri Lanka with Dialog, a subsidiary of Axiata Group. The proposed transaction involves Airtel being granted a stake in Dialog, representing the fair value of Airtel Lanka. Airtel will be issued new shares in Dialog upon completion of the transaction.
The Parties are in discussions with relevant regulatory authorities, as per applicable laws and regulations, and the proposed transaction is subject to signing of definitive agreements and necessary closing conditions including applicable regulatory and shareholder approvals.
This move is expected to further consolidate the telecommunications industry in Sri Lanka and enhance the service offerings of both companies. Further announcements will be made in due course if there are any material developments.