Sri Lanka's top mobile telecommunication firm, largest telecommunications provider Dialog Axiata and India's Bharti Airtel have signed a binding term sheet for the merger of their Sri Lankan subsidiaries. With this merger, Bharti Airtel will get access to a large customer base in the island nation. Dialog Axiata which is a subsidiary of Malaysian Axiata, informed of the proposed merger in a disclosure to Colombo Stock Exchange.

The proposed transaction envisages Airtel being granted a stake in Dialog, representing fair value of Airtel Lanka. The disclosure added that Airtel would be issued new shares in Dialog upon completion of the transaction. Further, discussions with respect to the proposed transaction are ongoing between the parties and also with the relevant regulatory authorities as per applicable laws and regulations. The proposed transaction is subject to signing of definitive agreements and necessary closing conditions including applicable regulatory and shareholder approvals.