Axiata says the acquisition will facilitate the expansion of the scope of operations of Dialog Group into the sphere of mainstream Digital Financial Services. (Logo from the group’s website)

KUALA LUMPUR: Axiata Group Bhd’s 83.3 per cent-owned subsidiary, Dialog Axiata plc, has today acquired 37.37 million shares of Colombo Trust Finance plc (CTF) from Cargills Bank Ltd for RM29.49 million.

In a filing to Bursa Malaysia, Axiata said the acquired shares represent 80.34 per cent of the voting rights in CTF.

Besides that, in compliance with Company Take-Overs and Mergers Code 1995 (amended 2003) of the Securities and Exchange Commission of Sri Lanka, Axiata said a mandatory offer at a price of 79 sen will be made by Dialog to the remaining 9.14 million CTF shares.

The acquisition will facilitate the expansion of the scope of operations of Dialog Group into the sphere of mainstream Digital Financial Services.

“Dialog aims to bring together the realms of advanced digital connectivity and cutting edge financial technology (FinTech) to deliver a revolutionary suite of products and services which will expand the vistas of financial inclusion in Sri Lanka,” it said.

Dialog has entered the sphere of financial services in 2012 when it was licensed by the Central Bank of Sri Lanka (CBSL) to operate the country’s first Mobile Payment Service eZ Cash.

Now in its fifth year of operation, eZ Cash has over the years secured over 2.8 million mobile payment subscribers from across Etisalat Hutch and Dialog Mobile Networks.

Besides that, Dialog also operates the TOUCH contactless transport payment service under license by the CBSL.

Axiata said the acquisition of CTF was funded through internal and external funding.

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