Mobitel, a Sri Lanka Telecom (SLT) subsidiary, is discussing the possible acquisition of Hutchison Telecom Lanka with the company’s parent.
According to a Colombo stock exchange notice, negotiations are at a preliminary stage and the outcome will…
Mobitel, a Sri Lanka Telecom (SLT) subsidiary, is discussing the possible acquisition of Hutchison Telecom Lanka with the company’s parent.
According to a Colombo stock exchange notice, negotiations are at a preliminary stage and the outcome will depend on the completion of confirmatory due diligence, parties agreeing on the sale terms and conditions, and regulatory clearance.
Mobitel is wholly-owned by SLT, itself 49.5%-held by the Sri Lankan government.
Hutchison Telecom Lanka is a unit of Hutchison Asia Telecom, which is owned by Honk Kong giant Hutchison Whampoa Group.
A deal between the two operators would reduce the number of players in the Sri Lankan mobile market from five to four.
Mobitel had revenues of LKR7bn (US$53m) in the third quarter of 2013, a 5% increase on Q2.
Last summer, local reports suggested that two other Sri Lankan operators – Etisalat and Airtel – were also considering merging their operations in a deal that would have created the country’s second-largest mobile company.
