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| Sunday, 28 September 2003 |
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| News Business Features Editorial
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SLT-Lanka Bell deal to come through in 2 months Sri Lanka Telecom (SLT), the leading telecommunications provider in the country, is presently negotiating with fixed wireless operator Lanka Bell to acquire a controlling stake in the latter. "It will take about two months to finalise the deal," said a top official of the SLT who did not want to be named. "We are considering at least a 51 per cent stake since we want the controlling rights of the company," said the official. In a letter to the Colombo Stock Exchange (CSE), SLT said it had signed a non-disclosure agreement with Lanka Bell to conduct a study of the company. It said the final cost of the acquisition will depend on the valuation of Lanka Bell's balance sheet from the study. According to sources, Lanka Bell has valued its assets at two billion rupees while SLT's valuation is lower. Lanka Bell has 44,000 lines. When contacted by Sunday Observer Business, CEO Lanka Bell Joey Mendoza declined to comment on the deal. SLT, the biggest telecom operator in the country, is 35 per cent owned by Japan's Nippon Telegraph and Telephone Company. The Government sold a 12 per cent stake in the company through an initial public offering last year, keeping 49.5 per cent. Employees hold the balance shares. SLT currently holds about 86 per cent of the fixed line market and a 15 per cent share of the mobile phone market. Sixty per cent of Lanka Bell shares are owned by Singapore's Transmarco Ltd. The company started operations in 1997 and is the second fixed wireless operator in the country. In August 2002 SLT lost its monopoly on fixed line local and international calls. It was followed by the opening up of the telecommunications sector by the government. SLT expects to benefit from the acquisition by gaining Lanka Bell's wireless technology, which will help in expanding services specially in areas where it is too costly to lay cables, the SLT spokesman said. |
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| Editorial | Security Produced by Lake House |
