TECHNOLOGY
In a significant move, Axiata Group Berhad has decided to exit Ncell, Nepal’s leading telecommunications provider. The decision comes after Axiata observed a decline in Ncell’s returns, negatively impacting the group’s overall financial performance.
Citing an increasingly challenging business outlook in Nepal, Axiata’s board of directors has classified Ncell as an asset held for sale. This means that the company will put its Ncell shares up for sale, marking its exit from the Nepalese telecom market.
Axiata’s involvement with Ncell dates back to seven years ago when it acquired an 80% stake in the company. However, the group has faced challenges, including a capital gains tax dispute that was eventually resolved. The remaining 20% of Ncell’s shares are held by Sunivera Capital Ventures, an investment firm owned by Nepali businessmen.
Axiata’s decision to exit Ncell is a major development in Nepal’s telecom landscape. The company’s exit could lead to consolidation within the industry, potentially paving the way for new entrants or increased market share for existing players.
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