Axiata’s Reply to NTA – We are committed to following the laws of Nepal

In a significant development regarding the sale of Ncell shares, Ncell Axiata has officially pledged its commitment to adhere to the laws of Nepal in the purchase and sale of shares. The telecommunications giant conveyed this assurance in a reply letter to the Nepal Telecommunication Authority, as confirmed by Purushottam Khanal, the chairman of the authority.

Chairman Khanal noted that Ncell Axiata’s response had been received and emphasized the company’s readiness to fully comply with the regulatory framework governing the purchase and sale of Ncell shares within Nepal.

In today’s finance committee meeting, Khanal is providing additional details and answers concerning the Ncell purchase and sale case, shedding light on the intricacies of the situation.

Axiata, having entered the Nepalese market with enthusiasm, recently announced its decision to exit on September 30 after a tenure of seven years, six months, and 13 days. The Nepal Telecommunication Authority had earlier reminded shareholders, through a written communication to Ncell Axiata, that approval from the authority is a prerequisite before any sale or transfer of shares.

Axiata’s entry into Nepal occurred on April 12, 2016, through the acquisition of Reynolds Holding, which held an 80% stake in Ncell. The acquisition amounted to a total of USD 1.36 billion.

However, the decision by Axiata to sell 80% of Ncell’s shares for USD 50 million, equivalent to USD 62.5 per share, has come under intense scrutiny. Despite Ncell’s robust performance during Axiata’s ownership, the sale at a price lower than 96% has raised serious questions and generated public concern.

The UK-registered company of Nepali partner Satish Lal Acharya has signed an agreement to purchase the shares sold by Axiata. In response to these developments, the government has announced its intention to investigate the matter, aiming to ensure transparency and compliance with regulatory standards in the sale of Ncell shares.