CK Hutchison Group and Etisalat Group have entered into an agreement to merge their mobile operations in Sri Lanka, operating under Hutchison Telecommunications Lanka (Hutch Lanka) and Etisalat Lanka (ESL) respectively.
The companies said that the combined business should be better positioned to serve their Sri Lankan customers. 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, among others, securing the necessary competition and regulatory approvals in Sri Lanka.
The takeover would see the market reduced to four from five mobile operators now which includes Dialog, Mobitel and Airtel.