Ncell asserts transparency in share transaction, defends against allegations

KATHMANDU: Spectralite UK Limited, the entity that acquired 80% of Ncell’s shares, has emerged as the successful contender in the competitive selection process, as announced by Ncell.

Addressing concerns about potential tax implications, Ncell affirms its commitment to abide by the law in any tax-related matters arising from the transaction.

Axiata executed the sale of 80% of Ncell shares to Satishlal Acharya’s company. The Public Accounts Committee of the Parliament, deeming the share buying and selling as lacking transparency and possibly associated with tax evasion, instructed a halt and investigation on Wednesday.

Today, Ncell rebuts these claims, asserting that Axiata ensured transparency in the process. Ncell’s statement emphasizes that Axiata conducted a competitive process for the sale of its stake in Reynolds Holdings, a company based in St. Kitts, with Spectralite UK being selected as the preferred bidder among several competitors.

The statement further outlines that the price and structure of the share transaction were determined through negotiations between interested buyers and sellers.

According to Ncell, the agreed contract structure stipulates that Axiata will receive additional benefits, such as profit sharing for five years until 2029, in addition to the base payment.

Ncell reports that the enterprise value of this share transaction amounts to approximately $400 million. The seller company will receive this value over a specified period based on the performance of the company.

Ncell underscores its compliance with all tax obligations to date, as verified by the tax office. It reiterates its commitment to follow the law in addressing any potential tax liabilities associated with the transaction.

The statement emphasizes Ncell’s dedication to responsible financial practices and compliance with tax laws.

Additionally, Ncell asserts that the share buying and selling process is transformative and will contribute to the development of Ncell.

The statement assures stakeholders that there will be no disruption in the quality of customer service during the changes at Ncell, reinforcing the company’s commitment to providing high-quality service as a responsible entity.