Airtel-Dialog deal likely to see light of day
The much-discussed (and denied) merger deal between Bharti Airtel’s wholly-owned Sri Lanka unit and Dialog Axiata, the Malaysia-based Axiata group’s telecom arm, is likely to go through this year, Datuk Azzat Kamaludin, Dialog Axiata Chairman told the Business Times.
On the sidelines of the inauguration of the ‘Sri Lanka Investment and Business Conclave 2016’ organised by the Ceylon Chamber of Commerce, where he delivered the keynote address, Mr. Kamaludin said that Dialog was in discussion with Airtel in this regard. He added that Dialog was keen to expand its spectrum and in this respect Airtel fitted the bill.
Asked to respond to this news, an Airtel spokesperson declined to comment. Mr. Kamaludin also said that Dialog is always eyeing opportunities to expand in all areas. Reminiscing the trials confronted by Dialog Axiata when it started in 1995, he told the business forum that the milestones for the company happened during the worst of times for the country.
He said that during what was called the 1st, 2nd, 3rd and 4th Eelam wars, Dialog’s major investments happened. Mr. Kamaludin was appreciative of Sri Lanka’s human resources, saying that there was a wealth of human resource here and abroad and a company that harnesses such human resource well is bound to do well. “The company provides employment to 300 people and indirectly supports 100,000 families in the value chains. So what you may ask is our experience investing in a foreign country. First, I believe while one must be concerned of the policies and stability of the country, the business opportunities as reflected in the size, growth potential of the market, the investment climate, and incentives provided to invest, the investor has to accept conditions cannot be exactly as he wants it to be.”
He added that Dialog paid Rs. 11.1 billion as taxes to the government in 2014. “Having come to Sri Lanka in the worst of times and survived and thrived, we look forward to the best of times, to work with the Government of National Unity, to realise its promise of peace and prosperity for Sri Lanka. For those who are waiting, watching or wanting to invest in Sri Lanka, I say wait not, I suggest you float with Sri Lanka.”
In his address, Special Assignments Minister Dr. Sarath Amunugama noted that the location, human capital and natural resources at the disposal of investors was an incentive to invest in Sri Lanka. “The Middle East, which once had huge assets, has today become an unstable area. They were the best of Sri Lanka’s friends. Many of our people found employment in the Middle East. We look forward to resuming those links but today it is in turmoil. The economies of India and China have had to be changed, their growth target downgraded.”