Dialogue Axiata, Sri Lanka's largest telecommunications operator and a subsidiary of Malaysian Axiata, has announced a binding term sheet for the merger of its Sri Lankan operations with India's Bharti Airtel. The proposed transaction will grant Airtel a stake in Dialog, representing the fair value of Airtel Lanka, and will allow Airtel access to a large customer base in the island nation.
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Ongoing Discussions and Regulatory Approvals:
According to Dialog's disclosure to the Colombo Stock Exchange, discussions with relevant regulatory authorities are ongoing, and the proposed transaction is subject to the signing of definitive agreements and the fulfilment of all necessary closing conditions, including applicable regulatory and shareholder approvals.
Access to a Large Customer Base:
The merger is expected to provide Airtel with access to a large customer base in Sri Lanka and enhance its network coverage and customer service capabilities in the country. Dialog, on the other hand, is expected to benefit from Airtel’s global expertise in telecommunications and digital services.
Impact on the Telecommunications Market:
The proposed merger is expected to have a significant impact on the telecommunications market in Sri Lanka, with Dialog and Airtel bringing together their resources and capabilities to provide better services to their customers. The combined entity is also expected to be better positioned to compete with other telecommunications providers in the country.
