The pact would combine the operations of Bharti Airtel Lanka (Private) Ltd, Airtel’s wholly-owned subsidiary, with Dialog, a subsidiary of Axiata Group.

In a joint statement, Axiata said the proposed transaction envisages Airtel being granted a stake in Dialog, representing the fair value of Airtel Lanka.

“Airtel would accordingly be issued new shares in Dialog upon completion of the transaction.

“Discussions with respect to the proposed transaction are ongoing between the parties and also with the relevant regulatory authorities as per applicable laws and regulations,” it said.

The statement said the proposed transaction would be subject to the signing of definitive agreements and necessary closing conditions, including applicable regulatory and shareholder approvals.

“The parties will issue further announcements in due course should there be any material developments,” added Axiata.

Axiata’s share was almost flat today, edging up 1 sen to RM3, giving the group a market capitalisation of RM27.54 billion.