Axiata Exits Nepal: Sells Ncell Stake for $50 Million

Malaysian telecommunications and digital conglomerate Axiata Group (AXIA.KL) has completed its departure from the Nepalese market with the sale of its majority stake in Ncell. The transaction, involving the sale of 80 percent of Axiata’s Ncell shares, amounts to a fixed consideration of US$50 million.

In addition to the fixed amount, Axiata is entitled to a conditional consideration, allowing the company to receive a share of future distributions from Ncell. This is contingent upon Ncell’s business performance, net distributions until 2029, and any windfall gains during this period, as stated in the telecom giant’s official statement.

The majority stake in Ncell is sold to Spectrlite UK Ltd. Spectrlite UK is a recently established company and is rumored to be owned by the Acharya brothers- Satishlal Acharya and Sachinlal Acharya. The completion of this transaction marks the culmination of Axiata’s venture into the Nepalese market.

Axiata initially acquired the controlling stake in Ncell in 2016 through the acquisition of Reynolds Holding for a significant amount of $1.37 billion. In their official statement, Axiata highlighted that the decision to withdraw from Nepal was the result of a comprehensive evaluation of the prevailing business environment, citing “current conditions of unfair taxation and regulatory uncertainties” as unsustainable for continued operations.