Ncell shifts to 100% Nepali-origin ownership, pledges to drive Digital Nepal Vision

KATHMANDU: In a groundbreaking development, Ncell, a leading mobile service provider in Nepal, is set to become a 100% Nepali-origin owned company, marking a significant shift in its ownership structure. The move aligns with Ncell’s renewed commitment to creating value for Nepali consumers and contributing to the government’s Digital Nepal vision.

Recent developments in Ncell’s shareholding reveal that Spectrlite UK, headed by Nepali-origin shareholder Mr. Satish Lal Acharya, emerged victorious in a competitive bidding process initiated by Axiata.

The sale involved Axiata’s shares in Reynolds Holdings, a company based in St. Kitts. Mr. Acharya emphasized the transparency of the process, with pricing and transaction structure determined through a willing buyer and seller basis.

As part of the agreed deal structure, Axiata is poised to receive a base payment, coupled with additional benefits such as profit-sharing for the next five years, extending until 2029.

The transaction places the enterprise value of Ncell at approximately $400 million, to be realized gradually based on the company’s performance. Beyond financial implications, the deal signifies a transformative shift towards greater Nepali-origin ownership and management in Ncell.

Axiata has taken steps to ensure transparency in the transaction, providing comprehensive details in press releases. Ncell affirms its commitment to responsible financial practices and tax compliance, having fulfilled its tax obligations to date, as verified by the Tax Office. Any taxes related to the transaction will be handled in strict accordance with Nepalese laws.

Currently, Ncell is in discussions with the Nepal Telecommunications Authority (NTA) to secure the necessary consents for the ownership transition. The company reassures its customers that amidst these changes, there will be no impact on the quality of services provided, maintaining its dedication to delivering high-quality services.

This transition marks a pivotal moment in Ncell’s journey, with a strong commitment and capability to diversify its digital services, ultimately enriching the lives of millions of Nepalis.

The ongoing expansion of network infrastructure beyond mobile connectivity underlines the significant opportunities Ncell envisions for the country. Ncell sees itself not merely adapting to change but actively contributing to the digital evolution of Nepal.

Fiscal Nepal |
Thursday December 7, 2023, 11:48:47 AM |

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