Dialog Axiata, Bharti Airtel to merge Sri Lankan operations to form largest telecom operator
- This announcement comes a day after Airtel announced a strategic partnership with Bridgepointe Technologies
Mumbai: Dialog Axiata and Bharti Airtel on Tuesday announced plans to merge their operations in Sri Lanka, creating the nation's largest telecom operator.
In a joint statement, Dialog Axiata Plc, Axiata Group Berhad, and Bharti Airtel said they had signed a binding term sheet for the merger of Bharti Airtel Lanka Pvt. with Dialog's subsidiary. As part of the agreement, Airtel will receive new Dialog shares representing Airtel Lanka's fair value.
“The deal is subject to the signing of definitive agreements and meeting necessary conditions, including regulatory and shareholder approvals,” the companies said. They added that discussions with respect to the proposed transaction are ongoing between the parties and also with the relevant regulatory authorities as per applicable laws and regulations.
Dialog Axiata is Sri Lanka's largest mobile network operator with 17.4 million subscribers, accounting for 57% of the country's mobile market. Airtel Lanka, one of the fastest-growing telecom service providers, has over 5 million customers and operates in 25 administrative districts. It has a distribution network of over 50,000 retailers with 4G and 2G services present across major towns in Sri Lanka.
This announcement comes a day after Airtel announced a strategic partnership with Bridgepointe Technologies, a tech advisory firm assisting mid-market and enterprise companies in optimizing tech investments and business results. This partnership enables US enterprises seeking to expand into India and Africa to leverage Airtel's digital infrastructure solution.
“At Airtel, we have massive network investments, a strong product ecosystem and a large customer base, especially in India and Africa. We are delighted to collaborate with Bridgepointe to extend our extensive suite of products to their customer base,” said Vani Venkatesh, CEO, Global Business, Bharti Airtel.
On Tuesday, shares of Bharti Airtel ended at 1.14% lower at ₹790.20 apiece on the National Stock Exchange.
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Business NewsCompaniesNewsDialog Axiata, Bharti Airtel to merge Sri Lankan operations to form largest telecom operator
First Published:2 May 2023, 05:59 PM IST
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