Sri Lanka Telecom extends gains on NTT sale expectations

Sri Lanka Telecom (SLT) extended gains Wednesday on expectations of a sale of stock by NTT to Malaysia's Usaha Tegas group following a court order permitting the sale, dealers said.

SLT share rose one rupee to 39.25 on top of a 1.50 rupee gain on Tuesday.

Meanwhile, SLT said in a regulatory filing that a proposed shareholder agreement between Sri Lanka's government and the UT group cannot go ahead, but a court ruling has allowed a separate management deal.

Japan's NTT Communications which now owns 35.2 percent of SLT has a shareholder agreement with the government which owns 49.5 percent of the company, giving NTT benefits including the right to appoint a chief executive.

NTT was originally proposing to sell a 25 percent stake in Sri Lanka Telecom to Global Communications NV, a UT group investment vehicle, retaining a 10 percent stake.

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