Parental Consent

Sri Lanka Telecoms board on Wed. gave its blessings to acquire wireless local loop operator Lanka Bell.
The dominant fixed line operator declined to name the bid price, but industry analysts put a price tag of just under US$ 20 mn based on per-line cost assumptions for Lanka Bells 44,000 customers.rn

rnSLT will initially take a two third stake in Lanka Bell, as it braces itself to face increased competition in a liberalised market. rn

rn”We want to wrap up the deal with 100 percent ownership by end March next year. The share purchase agreement will be signed next week to allow us to buy the two thirds stake, so that we can consolidate it into our balance sheet,” SLTs Head of Investor Relations, Mohan Ratnayake told Lanka Business Online.rn

rnLanka Bell is 48.87 percent owned by Singapores Transmarco Ltd. while its unlisted parent company Miel Investment Corp owns a further 18.44 percent. rn

rnHe declined to say how SLT planned to pay for the acquisition. rn

rnldblquote It will probably be wit