Axiata subsidiary ventures in data centre biz in Sri Lanka

Dialog

KUALA LUMPUR: Axiata Group Bhd's subsidiary is venturing into the data centre business in Sri Lanka by buying a 35% stake in Digital Reality (Private) Ltd for 262.5mil Sri Lankan rupees (RM6.62mil).

It said on Tuesday its  83.32% subsidiary Dialog Axiata PLC's unit  Dialog Broadband Networks (Private) Limited was subscribing for a 35% stake in Digital Reality.

Digital Reality was set up to manage Sri Lanka’s first ever high-density data centre which will be located at the Orion City IT park in Colombo. 

Dialog Broadband will acquire stake in Digital Reality from St. Anthony’s Property Developers (Private) Ltd – which is currently the sole shareholder of Digital Reality.

St. Anthony’s Property Developers provides options for  Dialog Broadband to increase its stake in Digital Reality and obtain control which are exercisable within a period from year three to year five.

The will be based on option price calculated factoring; inter-alia, pre-agreed rate of returns based on earnings before interest, tax, depreciation and earnings before interest, tax, depreciation and amortisation (Ebitda) performance of Digital Reality.