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Mobitel considers strategic acquisition of local operator

Nov 28, 2015 (LBO) - Mobitel, a fully-owned unit of listed Sri Lanka Telecom, said it is considering a strategic acquisition of a local operator and denies reports that the company intends to pay over and above the value of the target entity. "Mobitel denies the assumptions and opinions made on the subject that Mobitel is intending a payment which is over and above the value of the target entity," mobile operator said in a statement. "Mobitel has stated that they are considering a strategic acquisition of a local operator to enhance the market position and asset base in line with a strategic investment plan," Mobitel said. The company added that they are following "due process required to be complied for such a transaction" and no finality has been reached. A media report said recently Mobitel intends to purchase Hutch Telecom for an amount above its valuation and board members who had disagreed with the plan had been dismissed. Mobitel has a customer base of over 5 million, and recently launched Dual Carrier HSPA+ technology making it the first network equipped with mobile 4G/LTE equipment, according to the company.
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