Bharti Airtel to Merge Sri Lanka Operations with Dialog Axiata

18 Apr 2024 , 01:50 PM

Bharti Airtel and Dialog Axiata announced a merger of their Sri Lanka operations in an equity swap deal, as stated in a joint statement released on Thursday.

Bharti Airtel shares saw a rise of 5.01%, trading at ₹1,277.35 at the time of writing, reflecting positive investor sentiment towards the merger.

Airtel Lanka, Bharti Airtel’s subsidiary in Sri Lanka, reported a turnover of ₹294 Crore in the financial year 2023, contributing 0.21% to Bharti Airtel’s overall business.

The definitive agreement signed by Dialog Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited outlines Dialog’s acquisition of 100% of Airtel Lanka’s issued shares. In return, Dialog will issue ordinary voting shares to Bharti Airtel, representing 10.355% of Dialog’s total issued shares through a share swap.

Airtel Sri Lanka commenced its commercial operations in 2009, aiming to provide telecommunication services in the Sri Lankan market.

Approval for the proposed merger has been obtained from the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), demonstrating its commitment to advancing telecommunications services across the country.

Dialog Axiata, a public limited liability company listed on the Colombo Stock Exchange, was incorporated in Sri Lanka on August 17, 1993, and boasts a subscriber base of over 17 million.

The merger aligns with Axiata Group Berhad’s strategy of market consolidation and resilience, aiming to create shareholder value through achievable synergies. Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, expressed optimism about the merger and its potential benefits.

With Dialog Axiata having over 17 million subscribers and Airtel Lanka boasting a customer base of over 5 million, the merger is expected to enhance market competitiveness and drive growth in Sri Lanka’s telecom sector.

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