Kathmandu- Ncell has claimed that 80 percent of the shares were purchased through competitive bidding.
The company has clarified that Aziata has adopted a competitive process for the sale of its shares in Reynolds Holdings (a company based in St. Kitts).
Ncell’s Statement :
Ncell is becoming 100% Nepali-Origin, owned company and now our focus is to create value for Nepali consumers, contributing towards the government in achieving the aspirations of Digital Nepal vision through operations of Ncell.
To shed some light on recent developments on shareholding in Ncell, below are some key facts which need to be communicated:
The shareholder of Spectrlite UK, Mr Satish Lal Acharya, who is of Nepali origin said, “Axiata ran a competitive process for the sale of its shares in Reynolds Holdings (a St Kitts company), with Spectrlite emerging as the winner amongst several bidders. The pricing and structure of the transaction was determined through a willing buyer and seller basis. As per the agreed deal structure, Axiata is set to receive a base payment, along with additional benefits in the form of profit-sharing for the next five years, extending until 2029.
The transaction places the Enterprise Value of Ncell at approximately ~400 million USD, to be realized gradually over time contingent upon the company’s performance. Beyond the financial aspects, this transformative deal signifies the evolution of Ncell towards a greater Nepali-origin ownership and management”.
Axiata has provided comprehensive details of the transaction in their press releases, ensuring transparency.
Ncell has till date fulfilled its tax obligations, as verified by the Tax Office. Additionally, any taxes applicable to this deal will be handled in strict accordance with the laws of Nepal. Ncell is committed to upholding tax compliance throughout this process, reassuring stakeholders of its responsible financial practices.
Ncell is currently in discussions with the Nepal Telecommunications Authority (NTA) to secure the necessary consents.
While changes are occurring at the Ncell, customers can rest assured that this will have no impact on the quality of services provided. The company remains fully committed to delivering high-quality services to all its customers.
In conclusion, Ncell is poised with a strong commitment and capability to diversify its digital services, enriching the lives of millions of Nepalis. The imperative for ongoing expansion of network infrastructure, beyond mobile connectivity, further underscores the significant opportunities that lie ahead for the country. As Ncell embarks on this transformative journey, it is not merely adapting to change but actively contributing to the digital evolution of Nepal
