Dialog announces share swap details on merger with Airtel

Dialog Axiata PLC yesterday announced the details of the share swap for its merger with Airtel Lanka.

The share swap basis will be 5,041 Dialog Axiata shares for every 642,966 shares held by Bharti

Airtel Ltd., in Bharti Airtel Lanka (BAL) with the fractions arising from the computation of shares based on such proportion being [rounded up to the nearest whole number.

Consequently, under the proposed transaction DIAL will acquire 121,513,646,771 ordinary shares in BAL from its parent for consideration to be paid by the issuance of 952,694,689 new ordinary voting shares or 10.35% stake in Dialog.

Pursuant to the proposed transaction, BAL will become a wholly owned subsidiary of Dialog.

Following the completion of the said acquisition, the Company proposes to amalgamate itself with BAL under Section 242 of the Companies Act No. 7 of 2007, with Dialog remaining as the amalgamated entity. The amalgamation is subject to relevant corporate and regulatory approvals.

On 18 April, the parties announced they have signed a definite agreement to combine their operations following the approval by the Telecommunications Regulatory Commission of Sri Lanka. (See https://www.ft.lk/front-page/Dialog-Axiata-Group-and-Bharti-Airtel-sign-definitive-deal-for-merger-in-SL/44-760770)