Dialog Telekom to launch Rs 15.54 bln rights issue

Dialog Telekom Ltd is hoping to raise Rs 15.54 billion from a rights issue to fund aggressive expansion, the company said this week.
The proposed rights issue will provide ordinary shareholders of the company with an entitlement to one ordinary share for every ten ordinary shares held, at a price of Rs. 21 per share, inclusive of a premium of Rs.20 per share. The Rights Issue is expected to be submitted for approval by the shareholders at an Extraordinary General Meeting scheduled to coincide with the company’s AGM, it added.

“The Dialog Telekom Rights Issue is expected to attract substantial interest from Dialog’s shareholders spanning foreign institutional, domestic institutional and domestic retail segments. Dialog's principal shareholder Telekom Malaysia (TM) placing a strong vote of confidence in Sri Lanka and Dialog Telekom has pledged to enhance its direct investment in the country through subscribing in full for its entitlement under the rights issue,” the release said.