ECONOMYNEXT – Sri Lanka’s top mobile telecommunication firm Dialog Axiata has merged their operation with India’s Bharti Artel Limited, Dialog said in a statement to the Stock Exchange on Tuesday.
“…we wish to inform you that Dialog Axiata PLC, Axiata Group Berhad, and Bharti Artel Limited, have entered into a binding term sheet to combine operations of Bharti Artel Lanka (Private) Limited, Artel’s wholly-owned subsidiary with Dialog,” the listed company said in a disclosure to Colombo Stock Exchange (CSE).
“The proposed transaction envisages Artel being granted a stake in Dialog, representing the fair value of Artel Lanka. Artel would accordingly be issued new shares in Dialog upon completion of the transaction.”
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. The proposed transaction is subject to signing of definitive agreements and necessary closing conditions including applicable regulatory and shareholder approvals.
Dialog will provide further notifications to the CSE should there be any material developments.”
Dialog suffered a loss of 33.4 billion the last financial year ended on December 31, 2022, compared to a net profit of 17 billion rupees a year ago, led by expensive energy and finance cost amid an unprecedented economic crisis after Sri Lanka declared sovereign debt default in April last year.
Shares in Dialog closed steady at 11 rupees a share on Tuesday. (Colombo/May 2/2023)
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