Bharti Airtel on Tuesday said it has entered into a binding agreement to merge operations of Bharti Airtel Lanka with Sri Lanka-based telecom operator Dialog.
Airtel did not share details of the transactions and how it would benefit the company. The company will issue further announcements in due course on the basis of any material developments, it said.
“The proposed transaction envisages Airtel being granted a stake in Dialog, representing the fair value of Airtel Lanka. Airtel would accordingly be issued new shares in Dialog upon completion of the transaction,” Airtel said in an exchange filing.
Dialog is a subsidiary of Axiata Group Berhad, which is a Malaysian multinational telecommunications conglomerate with operations across Asia.
The proposed transaction is subject to signing of definitive agreements and necessary closing conditions, including applicable regulatory and shareholder approvals, the company said.
Airtel Sri Lanka commenced commercial operations of services in Sri Lanka in 2009 and was the fastest operator to reach 1 million customers.