Sri Lankan telecom operator Dialog Axiata (DIAL.CM), has signed a definitive agreement to buy Bharti Airtel's (BRTI.NS), operations in the island, the companies said on Thursday, nearly a year after the merger was announced.
The companies said the share swap would be valued by an independent body.
Airtel Lanka contributed a mere 0.2% of parent Bharti Airtel's consolidated turnover in fiscal 2023, the company said in an exchange filing.
Dialog Axiata PLC (DIAL) announced its resolution to acquire Bharti Airtel Lanka (Private) Limited, a mobile telecommunications services provider, subject to necessary approvals. Bharti Airtel Lanka is a subsidiary of Bharti Airtel Limited, a global communication service provider.
The acquisition will be executed through a Share Sale Agreement (SSA), with DIAL issuing 952,694,689 ordinary voting shares to the Selling Shareholder. This issuance constitutes 10.355% of DIAL's total issued shares, and will absorb the proportionate net debt of Bharti Airtel Lanka.
DIAL's Board of Directors has determined the cash value of the Airtel Sale Shares based on various factors, including revenue share, net investment, and additional spectrum contribution. They have deemed the consideration fair and reasonable to the company and its existing shareholders.
The completion of the acquisition is subject to regulatory approvals, including those from the Colombo Stock Exchange and shareholders' approval at an extraordinary general meeting. DIAL is currently in the process of obtaining all necessary corporate and regulatory approvals for the transaction.
The companies said the share swap would be valued by an independent body.
Airtel Lanka contributed a mere 0.2% of parent Bharti Airtel's consolidated turnover in fiscal 2023, the company said in an exchange filing.
Dialog Axiata PLC (DIAL) announced its resolution to acquire Bharti Airtel Lanka (Private) Limited, a mobile telecommunications services provider, subject to necessary approvals. Bharti Airtel Lanka is a subsidiary of Bharti Airtel Limited, a global communication service provider.
The acquisition will be executed through a Share Sale Agreement (SSA), with DIAL issuing 952,694,689 ordinary voting shares to the Selling Shareholder. This issuance constitutes 10.355% of DIAL's total issued shares, and will absorb the proportionate net debt of Bharti Airtel Lanka.
DIAL's Board of Directors has determined the cash value of the Airtel Sale Shares based on various factors, including revenue share, net investment, and additional spectrum contribution. They have deemed the consideration fair and reasonable to the company and its existing shareholders.
The completion of the acquisition is subject to regulatory approvals, including those from the Colombo Stock Exchange and shareholders' approval at an extraordinary general meeting. DIAL is currently in the process of obtaining all necessary corporate and regulatory approvals for the transaction.
