SLT looking at diluting more equity

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Sri Lanka Telecom is currently holding discussions for further dilution of equity as specified under listing rules to meet main Board requirements of the Colombo Stock Exchange.

Sri Lanka Telecom is the success story for privatisation in the State sector. It has recorded strong growth in earnings post privatisation while expanding its pivotal role in the digital evolution of the country, he said.

“Listed in the CSE with a government holding of not more than 49.5 per cent, we are currently in discussions for further dilution of equity as specified under listing rules to meet main Board requirements,” SLT Group Chairman Rohan Fernando said.

SLT market capitalisation of over Rs 70 billion representing approximately 1.5 per cent of the market capitalisation of the CSE is backed by a strong domestic franchise that has gained strength with the brand unification implemented in 2021.

“In January 2020, we saw a company with immense potential, but its progress was obstructed in several areas,” he said.

“Staff unrest was at the top of the list with regular strikes and work stoppages leading to poor messaging to the customers especially, the corporate sector,” he said.

“There were also significant investments made but without the desired ROI,” he said.

Sri Lanka Telecom is an asset rich company with a vast majority in Property Plant and Equipment, in addition to considerable investments in technology, he said.

SLT real-estate portfolio listed in the Annual Report is being reviewed for monetising through strategic partnerships, he said.

SLT is confident of good revenue from this exercise and hopes to create a new revenue line of approximately Rs 500 million per annum soon, he said.

By Mario Andree