Sri Lanka’s Mobitel plans to separate from parent company Sri Lanka Telecom (SLT) and list on the Colombo Stock Exchange.
The operator is gearing up for a public listing this year with the goal of diversifying its ownership beyond SLT, citing official sources.
The government of Sri Lanka, which owns a 49.5% stake in SLT, plans to exit partially or fully from Mobitel as part of a broader sell-off of its investments in state-owned enterprises.
The government is seeking to raise at least $1 billion to settle what it says is uneconomical debt it inherited from its predecessor.
Minister of telecommunications and digital infrastructure Harin Fernando meanwhile told that the separation is also aimed at helping tackle overcrowding in the nation’s telecoms industry and improving the competitiveness of Mobitel.
Mobitel commenced operations in 1993 and became a fully-owned subsidiary of SLT in 2002. The company currently accounts for around 45% of SLT’s annual revenues, the highest contribution among the group’s eight subsidiaries.