Dialog, Axiata Group, and Bharti Airtel have sealed an agreement to merge their operations in Sri Lanka, signaling a strategic move to enhance customer experiences and shareholder returns. This collaboration, announced after Dialog’s recent Series B funding round, underscores a shared commitment to advancing telecommunications services in Sri Lanka.
Under the agreement, Dialog will acquire 100 percent of Airtel Lanka’s shares, with Bharti Airtel receiving ordinary voting shares representing 10.355 percent of Dialog’s total issued shares. This transaction, subject to approval from Dialog’s shareholders and regulatory bodies, including the Colombo Stock Exchange (CSE), marks a significant milestone in the telecom industry.
The merger is expected to leverage economies of scale, streamline infrastructure, and drive synergies in technology and capital expenditure. By combining their strengths, the merged entity aims to enhance broadband connectivity, voice services, and operational efficiencies, ultimately delivering cutting-edge solutions to customers.
Vivek Sood, Group CEO and Managing Director of Axiata Group Berhad, expressed confidence that the merger will create value for shareholders and strengthen Axiata’s market position. “The merger between Dialog and Airtel Lanka is aligned to Axiata’s strategy of market consolidation and resilience. We have the utmost respect for Airtel Lanka and its employees and look forward to working together as we integrate the two companies,” he said.
Meanwhile, Hans Wijayasuriya, CEO of Telecommunications Business and Group Executive Director of Axiata, highlighted the potential for growth and innovation in Sri Lanka’s telecom sector. “This merger brings together the strengths of two leading telco groups and bodes well for the growth and sustainability of Sri Lanka’s flagship telecom sector. We look forward to the new frontiers in customer experience and innovation the company will deliver to Sri Lankan consumers and enterprises.”
Gopal Vittal, MD & CEO of Bharti Airtel Limited, emphasized the seamless integration of operations and the continuation of superior services for customers. He said, “We are happy to merge our Sri Lanka operations with Dialog. Given the scale and unique propositions they offer, we are certain that our customers will continue to enjoy cuƫing edge services on a seamless network.”
Additionally, Ashish Chandra, CEO of Bharti Airtel Lanka, emphasized the opportunities for innovation and growth resulting from the merger. “The integration of Dialog and Airtel Lanka operations will unlock new opportunities for innovation and growth, and this will lead to benefit consumers.”
With regulatory approvals in place and a clear vision for the future, Dialog, Axiata Group, and Bharti Airtel are poised to reshape Sri Lanka’s telecom landscape and deliver enhanced value to consumers and enterprises alike.