Etisalat, Hutch agree to merge Sri Lanka operations
27 April 2018 | Jason McGee-Abe
The Etisalat and CK Hutchison Groups have agreed to merge their mobile telecommunication operations in Sri Lanka.
The businesses will respectively operate under Hutchison Telecommunications Lanka (Private) Limited (Hutch Lanka) and Etisalat Lanka (Private) Limited (ESL).
The combined business of Hutch Lanka and ESL will be better positioned to serve their Sri Lankan customers. This transaction is part of the stated strategy and ongoing efforts of portfolio optimisation of the Etisalat Group.
“Upon completion of the transaction, CKHH Group will have the majority and controlling stake in the combined entity,” said Serkan Okandan, CFO of the Etisalat Group, who filed the announcement with the Abu Dhabi Securities Exchange yesterday.
“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 filing added: “Should there be any material developments on this subject, a further announcement will be made in accordance with applicable stock market rules and regulations.”