Kathmandu: In a surprising move, Axiata Group Berhad has officially declared its intention to part ways with Ncell, a prominent telecommunication company in Nepal.
In a press statement released on Wednesday, Axiata revealed its decision to initiate the sale of its assets, marking the beginning of its exit from Ncell. The board’s resolution to divest its shares in Ncell stems from a declining business trend attributed to the operations in Nepal.
The quarterly report recently published by Axiata highlights the diminishing returns from Ncell, resulting in a notable impact on the overall financial standing of Axiata Group.
The statement explicitly cites the increasingly challenging business landscape in Nepal as a pivotal factor behind the strategic decision. “The outlook in Nepal is increasingly challenging, thus the Board has decided to exit Nepal and accordingly reclassify Ncell as an asset held for sale,” the press release stated.
Axiata’s venture with Ncell commenced seven years ago when the group acquired 80 percent of the company’s shares. Over time, the telecommunications giant found itself entangled in a capital gains tax dispute, which was eventually resolved.
Currently, the remaining 20 percent stake in Ncell is held by Sunivera Capital Ventures, an entity led by businessmen of Nepali origin.
This decision marks a significant development in the telecom sector and raises questions about the future trajectory of Ncell in the Nepalese market.
As Axiata initiates the process of divestment, industry experts are closely watching for potential buyers and anticipating the broader implications on the telecommunications landscape in Nepal. Stay tuned for further updates on this evolving story.