## Axiata and Bharti Airtel to Merge Sri Lankan Operations
Axiata PLC, Axiata Group Berhad, and Bharti Airtel Limited have signed a definitive agreement to combine their operations in Sri Lanka. This merger will create a stronger telecommunications player in the country, offering enhanced services and improved efficiency.
Under the agreement, Dialog Axiata PLC will acquire 100% of the issued shares in Airtel Lanka. In return, Dialog will issue Bharti Airtel ordinary voting shares, amounting to 10.355% of Dialog's total issued shares. This transaction is subject to shareholder approval and completion of specific conditions outlined in the share sale agreement.
The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has already granted its approval for the proposed merger. This consolidation will enable the merged entity to achieve economies of scale, reduce infrastructure duplication, and achieve synergies in technology and capital expenditure. This will lead to enhanced high-speed broadband connectivity, voice and value-added services, cost savings, and operational efficiencies.
Both Axiata and Bharti Airtel believe this merger will create value for shareholders and benefit Sri Lanka's telecommunications sector. The combined entity will leverage the strengths of both companies to deliver innovative and seamless services to customers and enterprises.
The transaction is expected to be completed in the second half of 2023, subject to regulatory approvals and other customary closing conditions.