Sri Lanka’s Hutchison Telecommunications and Etisalat Lanka announce merger
Two of Sri Lanka’s smaller mobile phone companies, Hutchison Telecommunications Lanka (Private) Limited (Hutch Lanka) and Etisalat Lanka (Private) Limited (ESL) have reportedly announced that they have completed the merger of the two businesses.
A statement issued on the merger has stated that Emirates Telecommunications Group Company PJSC (Etisalat Group) has completed the sale of its 100 percent stake in Etisalat Lanka (Private) Limited (ESL) to Hutchison Telecommunications Lanka (Private) Limited (Hutch Lanka).
“Upon completion of the sale, CK Hutchison Holdings Limited group will have a majority and controlling stake of 85 percent whilst Etisalat Group will have 15 percent ownership of Hutch Lanka.”
The two companies in April this year had stated that the two firms entered into an agreement to merge their mobile telecommunications businesses in the island after getting the necessary competition and regulatory approvals in Sri Lanka.
OSL take:
The merger between the two mobile phone companies in Sri Lanka would now result in the creation of yet another strong mobile phone operator to compete in the country’s telecommunications sector. Sri Lanka has been focused on developing its telecommunications and digital infrastructure sector. Therefore, foreign telecommunications companies could start exploring investment opportunities in Sri Lanka given the constantly expanding local market.
| Article Code : | VBS/AT/20181207/Z_1 |