Two mobile operators, new entrants themselves, are interested in buying Lanka Bell Ltd (LTL) and have submitted Expressions of Interests (EOIS) to LTL’s financial advisors, KPMG, according to industry sources. “Both these operators don’t have CDMA (Code-Division Multiple Access) products and they are interested in acquiring LTL,” a source told the Business Times.
The Distilleries Company of Sri Lanka (DCSL) owns nearly 100% of the company, which in the recent past was seen dragging DCSL profits.
Lanka Bell was publicly offered for sale through a newspaper advertisement last week.
The DCSL group telecom segment’s profit of Rs 76 million in 2009 turned into a loss of Rs 800 million. “Things look a bit better for the telecommunication sector with interconnectivity charges and floor rates implemented by the regulator, but standalone fixed line companies such as Lanka Bell will not be making too much money,” an analyst told the Business Times.
He said that two big telecoms – Sri Lanka Telecom (SLT) and Dialog Axiata (Dialog) have moved into total solutions such as mobile, fixed line, broadband (e.g. with SLT-Mobitel and SLT Broadband and with Dialog – Dialog CDMA and Dialog Broadband). “This product offer makes it much more attractive to firms who look for comprehensive communication solutions.” The EOI submissions end next Friday. |
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