Indian mobile operator Bharti Airtel is in talks to mergeits Sri Lanka unit into Dialog Axiata. The transactions involves a share-swap deal, India's Economic Times reports, citing two unnamed people familiar with the matter. A potential Airtel Lanka-Dialog Axiata merger will be similar to the recent merger of Bharti Airtel and Axiata's telecom units in Bangladesh. Axiata will be the dominant shareholder and Airtel a strategic minority holder in the combined entity, the same sources added.
Dialog Axiata may issue ordinary shares to Bharti Singapore, a Bharti Airtel offshore arm, akin to the model followed by Bharti and Axiata group in the ongoing merger of their Bangladesh units, one of the persons said. "The negotiations are still on," the person added.
