Dialog Axiata PLC – Corporate Disclosure
Monday, 13th May 2013
We write to inform you that Dialog Broadband Networks (Private) Limited (“DBN”), a wholly owned subsidiary of Dialog Axiata PLC (“Dialog”), has entered in to a Share Purchase Agreement (“SPA”) with all the shareholders of Sky Television and Radio Network (Private) Limited (“Sky”/ “the Company”) for the acquisition of 100% of the ordinary shares in issue of Sky at a consideration of Rupees 800Million (“the Transaction”). Following the completion of the acquisition, steps will be taken to amalgamate Sky with DBN.
The rationale for the acquisition of Sky by DBN is centered on the Spectrum Assets currently possessed by the Company in the 2.3GHz spectrum band. The said spectrum has been assigned to the Company by the Telecommunications Regulatory Commission of Sri Lanka (“TRCSL”) for the provision of Pay Television Services. The 2.3GHz spectrum band has been adopted globally for the provision of LTE Services and DBN’s Fixed LTE service launched in December 2012 is based on a 15 MHz allocation within the said band. The acquisition of a further resource in the same band would enable DBN to expand its high speed broadband delivery capacity via LTE technology.
DBN has received the approval of the TRCSL for the afore-referenced acquisition of Sky and the amalgamation of the Company with DBN along with its spectrum resources. The TRCSL has also granted approval for the redeployment of the afore-referenced spectrum for the purpose of expanding the broadband services delivered via LTE technology.
Dialog will provide notification to the CSE at the point of amalgamation of Sky with DBN upon the completion of administrative processes related to the corporate amalgamation.
We have attached herewith a copy of the media release which will be disseminated in parallel with this notification.