On Tuesday, Dialog Axiata, one of the leading telecommunications service providers in Sri Lanka, revealed its intentions for a merger with Bharti Airtel, which would result in the formation of the nation’s largest telecom operator. This merger will make Dialog Axiata a part of the Bharti Airtel group.
Dialog Aixata Plc, Axiata Group Berhad, and the enormous Indian telecommunications services provider Bharti Airtel announced on Tuesday that they had signed a binding term sheet for the merger of Bharti Airtel Lanka Pvt. with Dialgo’s subsidiary. This announcement was made in a joint statement that was released on Tuesday. As part of the agreement, Airtel will get additional Dialogue shares that are equal in value to Airtel Lanka’s market capitalization.
According to statements made by both firms, “the transaction is subject to the signing of definitive agreements and the meeting of necessary conditions, including regulatory and shareholder approvals.” They further highlighted that the aforementioned transaction between the two parties and relevant regulatory agencies is now continuing in accordance with the rules and regulations that are in effect.
With around 57% of the mobile market in Sri Lanka and 17.4 million users, Dialogue Axiata is the biggest mobile network provider in the nation. Airtel Lanka is one of the telecom service providers that is expanding at the quickest pace. It now serves more than 5 million consumers in 25 administrative districts. It has a distribution network that includes over 50,000 stores that provide both 4G and 2G services and is present in all of Sri Lanka’s main municipalities.
“Here at Airtel, we have made significant investments in our network, we have a robust product ecosystem, and we have a substantial customer base, particularly 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 of Global Business for Bharti Airtel. “We look forward to building a strong relationship with Bridgepointe.”