Sri Lanka Telcom giants Hutch and Etisalat have agreed to to merge their mobile telecommunications businesses in Sri Lanka.
CK Hutchison Group (“CKHH Group”) and Emirates Telecommunications Group Company PJSC (“Etisalat Group”) have entered into a definitive agreement to merge their mobile telecommunications businesses in Sri Lanka, operating under Hutchison Telecommunications Lanka (Private) Limited (“Hutch Lanka”) and Etisalat Lanka (Private) Limited (“ESL”) respectively,a joint media release said .
“The combined business of Hutch Lanka and ESL will be better positioned to serve their Sri Lankan customers,” it said.
“This transaction is part of the stated strategy of portfolio optimization of the Etisalat Group. Upon completion of the transaction, CKHH Group will have the majority and controlling stake in the combined entity.”
The completion of the transaction is subject to a number of conditions precedent, which include securing the necessary competition and regulatory approvals in Sri Lanka, the statement said.