Dialog buys two Sri Lankan firms - CBN SAT

Dialog Telekom, subsidiary of Telekom Malaysia Bhd's (TM) has acquired 100 percent of Communiq Broadband Networks (Private) Ltd (CBN) and CBN SAT (Private) Ltd for Rs.523.8 million, in a bid to strengthen its media operation and achieve a quadruple product proposition for consumers in Sri Lanka, namely in mobile, fixed, broadband and television media.

"The rationale of the proposed acquisition of CBN and CBN SAT is to deliver expedited achievement of the several key market critical success factors such as immediate capture of content agreements, existing customer base to provide the operation with immediate and significant market presence," the company said in a report.

Dialog, the country’s biggest mobile phone operator will buy the companies from Muhunthan Canagasabey and Niranjan Canagasabey who have equal stakes in both the companies and the acquisition, would be financed from Dialog's internally generated funds and/or borrowings. CBN SAT is due to resume transmission tomorrow after six months being off the air due to a legal dispute.