Telecom company Bharti Airtel said on Tuesday that it has reached a deal with the Axiata group to combine its operations in Sri Lanka with Dialogue Axiata.
“Dialogue Axiata Plc, Axiata Group Berhad, and Bharti Airtel Limited (collectively “the parties”), have entered into a binding term sheet to combine operations of Bharti Airtel Lanka (Private) Limited, Airtel's wholly-owned subsidiary, with Dialogue, a subsidiary of Axiata Group Berhad,” according to a regulatory filing by Airtel.
Under the proposed agreement, Airtel would get an interest in telecom provider Dialogue that will be equal to the fair market value of Airtel Lanka.
“Airtel would accordingly be issued new shares in Dialogue upon completion of the transaction,” the document said.
According to the statement, the proposed deal is subject to consummating the relevant legal documents and closing requirements, such as obtaining appropriate shareholder and regulatory clearances.
According to the regulatory filing, “the parties will issue additional announcements in due course should there be any material developments.”