Malaysia: Malaysian telco Axiata to exit Nepalese market

Dec 04, 2023 | Posted by Abdul-Rahman Oladimeji

Malaysian telco Axiata Group Berhad  announced last week that it has entered into an unconditional sale and purchase agreement with Spectrlite UK Limited for the sale of Reynolds Holding Limited, which owns approximately 80 percent equity stake in Ncell Axiata Limited. The company mentioned that it will sell Ncell for a fixed consideration of $50 million.

Vivek Sood, group chief executive officer and managing director of Axiata, "Axiata has been in Nepal for seven years, working alongside hard-working colleagues in Ncell.” He added that its decision to exit from Nepal is due to "unfair taxation and regulatory uncertainties," which is no longer sustainable for the company.

Sood added, "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."