Airtel inks pact to merge Sri Lanka operation with Dialog Axiata

Bharti Airtel through a regulatory filing on Tuesday, May 2, 2023, signed a pact with Axiata group to merge its Sri Lanka operations with Dialog Axiata, Sri Lanka's leading Quad-Play Connectivity Provider.

"Dialog Axiata Plc, Axiata Group Berhad and Bharti Airtel Limited (collectively "the parties"), have entered into a binding term sheet to combine the operations of Bharti Airtel Lanka (Private) Limited, Airtel's wholly-owned subsidiary, with Dialog, a subsidiary of Axiata Group Berhad," Airtel said in a regulatory filing.

Under the proposed arrangement, Airtel will receive a stake in telecom operator Dialogue in exchange for the fair value of Airtel Lanka.

"Airtel would accordingly be issued new shares in Dialog upon the completion of the transaction," the filing said.

"The proposed transaction is subject to the signing of definitive agreements and necessary closing conditions, including applicable regulatory and shareholder approvals," it said.

"The parties will issue further announcements in due course, should there be any material developments," the regulatory filing said.

At closing, shares of the telecom company were down 1.11 per cent to Rs 790.15 apiece on BSE. On NSE, the stock ended among the major losers and quoted Rs 790.2 per share.

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