KUALA LUMPUR (March 20): Axiata Group Bhd’s 83% subsidiary in Sri Lanka, Dialog Axiata PLC (Dialog), has entered into an agreement to establish and operate a a data centre business in Sri Lanka.
In a filing with Bursa Malaysia, Axiata said Dialog’s unit Dialog Broadband Networks (Private) Ltd (DBN) had on March 16 entered into a shareholder agreement with St. Anthony’s Property Developers (Private) Ltd (SAPD) to acquire through a primary issuance, a 35% equity stake in Digital Reality (Private) Ltd (DRPL).
Axiata said Dialog is Sri Lanka's largest foreign direct investor with investments totaling US$2.3 billion by December 2017.
It said DBN is Sri Lanka’s second largest fixed telecommunications provider and serves residential and enterprise customers with voice, broadband, leased lines, data centre solutions and other customised telecommunication services.
DBN has the distinction of being the first telecommunications operator in Sri Lanka to launch 4G and 4.5G LTE High Speed Broadband Services, the filing added.
Meanwhile, DRPL is a company that operates Sri Lanka’s first ever high-density Data Centre which will be located at the Orion City IT park in Colombo.
Axiata said the purpose of DRPL is to establish, operate and manage a Data Centre in Sri Lanka, and that DBN would acquire 35% of the share capital of the former.
SAPD provides options for DBN to increase its stake in DRPL and obtain control which are exercisable within a period from Year 3 to Year 5, Axiata added.
Axiata said DBN would make the acqusition via its internally-generated funds.
At midday break today, Axiata rose 1.31% or 7 sen to RM5.42, with 513,600 shares traded.