Sri Lanka’s Dialog Axiata’s subsidiary, Dialog Broadband Private Ltd (DBN) this week bought out Suntel Ltd, the second largest wireless fixed line operator in Sri Lanka, acquiring its entire 100 % stake from its current shareholders.
The deal came after years of the search by Suntel shareholders to sell its stake, drawing interest from many telecom firms including Sri Lanka Telecom and Indian firms.
A share purchase agreement signed between DBN and the shareholders of Suntel sets the purchase in the range of US$ 33.9 million to US$ 34.9 million, subject to an outcome of confirmatory business valuation and due diligence during the period leading up to the completion of the transaction, Dialog Axiata 0fficials said. They noted that this acquisition process will be completed in a few months’ time.
“The successful consummation of the transaction during the course of the next few months is envisaged to lead to the merger of the operations of DBN and Suntel and the creation of a merged entity, providing advanced fixed line and broadband services to Sri Lankan consumers,” a press release issued by Dialog Axiata said.
It quoted Chairman of Dialog Broadband Networks and Group Chief Executive at Dialog Axiata PLC Dr. Hans Wijayasuriya as saying that the combined strengths of DBN and Suntel will be synergised towards establishing a best in class infrastructure platform for the provision of high quality fixed telecommunications and broadband services which are expansive in their availability, and inclusive in terms of affordability to Sri Lankan citizens.