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Axiata concludes sale of Ncell, exits Nepal

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Post Rerport

Published at : December 2, 2023

Updated at : December 2, 2023 07:51

Kathmandu

Axiata Group Berhad on Friday announced that it had entered into an unconditional sale and purchase agreement with Spectrolite UK Limited (purchaser) for the sale of Reynolds Holding Limited, which owns approximately 80 percent equity stake in Ncell Axiata Limited.

The Group's decision to withdraw from Nepal is based on a thorough evaluation of the prevailing business environment in Nepal, which led to the conclusion that continuing operations under the current conditions of unfair taxation and regulatory uncertainties was no longer sustainable for Axiata. Axiata entered the Nepal market in 2016, following the acquisition of Reynolds for the purchase price of $1.365 billion, effectively securing an 80 percent equity interest and controlling stake in Ncell.

Vivek Sood, group chief executive officer and managing director of Axiata, said: “Axiata has been in Nepal for seven years, working alongside hard-working colleagues in Ncell. However, the increasing challenges in the operating environment represent a fundamental shift. It has led the Axiata board to conclude, after a thorough process, that our foray in Nepal cannot continue due to the unfavorable conditions for Axiata, the uncertain regulatory and tax environment, and the looming risks associated with the expiry of the mobile license in 2029.