•   Wednesday, 12 Jun, 2024

NTA asks Axiata to follow legal procedures while selling away its stakes in Nepal

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KATHMANDU, Dec 2: The Nepal Telecommunications Authority (NTA) has asked Axiata, the parent company of Ncell, to follow legal procedures after the multinational company announced an exit from Nepal’s telecommunications sector without duly informing the government authorities concerned.

Sending a letter to Axiata on Friday, the sector’s regulator said the company needs to take prior approval of the NTA when they sell or transfer shares to other parties. The law has talked about mandatory provision to take NTA’s prior approval if any telecommunications company attempts to sell their shares worth more than five percent of their paid-up capital, according to the NTA.   

Malaysian telecommunications and digital conglomerate Axiata Group has announced to sell its 80 percent stakes in Ncell to Spectrlite UK. The company is set to sell stakes in its mobile service unit in Nepal for a fixed consideration of US$50 million.

Axiata had acquired the controlling stake in Ncell in 2016 following the purchase of Reynolds Holding for US$1.37 billion.

Showing the issues of ‘current conditions of unfair taxation and regulatory uncertainties in Nepal, Axiata has stepped up to exit from its business in Nepal. The critics however said that the company took ‘scapegoat’ measures to take away all its profit citing an approaching date of expiration of its license in 2029.   

Source: myRepublica
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