Investment in Digital Commerce Lanka (Pvt) Ltd
Monday, 10th December 2012
CORPORATE DISCLOSURE – INVESTMENT IN DIGITAL COMMERCE LANKA (PVT) LTD
We write to inform the Colombo Stock Exchange that Dialog Axiata PLC (Dialog), in furtherance of its aspiration to enhance its presence and offering in the space of online commerce and trade, has entered in to an Investment Agreement with Digital Commerce Lanka (Pvt) Ltd (DCL) to acquire an entry stake of 26% at a valuation of circa USD 1.59 Mn. The remaining shareholding of DCL is held by the shareholders of Anything (Pvt) Ltd, a leading e-commerce operator in Sri Lanka.
Going forward, DCL will subsume the brand properties and business operations of Anything (Pvt) Ltd, and the e-commerce business of the Dialog Group including ibuy.lk and tradenet.lk. DCL will establish and operate a unified platform for internet based commerce and trade through the aggregation of the afore-referenced e-commerce properties. DCL will also aggregate several new platforms and services envisaged for introduction in the future.
In tandem with the investment in DCL, Dialog entered in to a Shareholders Agreement (SHA) with the shareholders of DCL. The SHA among other terms and conditions provides an opportunity for Dialog to increase its stake in DCL over the ensuing period.
We have attached herewith a copy of the media release which will be disseminated in parallel with this notification.