Cash Call

Oct 24, 2007 (LBO) – Sri Lanka’s biggest mobile phone operator, Dialog Telekom, announced Wednesday it had struck a deal with investors to raise five billion rupees through a privately placed preference share issue. The proceeds of the Preference Share Issue amounting up to Rs. 5.0 billion will partially finance the Dialog Group’s capital expenditure plan spanning the range of telecommunications and media sectors,” it said in a statement to the Colombo Stock Exchange.

Dialog said it won shareholder approval at the EGM held on 21st May 2007 to raise up to five billion rupees by issuing up to five billion Rated Cumulative Redeemable Preference Shares of one rupee each.

“. . . the company entered into an agreement with participating investors including banks and financial institutions to raise five billion rupees via the said Preference Share Issue.”

With 3.9 million subscribers, Dialog controls 60 percent of Sri Lanka’s 6.4 million cellular market.

Dialog Telekom’s five billion rupee preference share issue had been rated AA+ (lka), a notch below the telco’s senior debt rating of AAA (lka), Fitch Ratings said.

Currently the largest mobile phone services provider in Sri Lanka, Dialog is diversif