KATHMANDU, Nov 29: Axiata Group Berhad has decided to leave Ncell.
In a statement issued on Wednesday, Axiata said it has put its assets up for sale with the aim of exiting Ncell. The board decided to sell the shares in Ncell citing a falling business of the group incurred by Axiata Group due to Nepal's Ncell.
In the quarterly report published by Axiata, it is mentioned that the returns of Ncell are decreasing and due to this, the overall financial statement of Axiata has been affected. “The outlook in Nepal is increasingly challenging, thus the Board has decided to exit Nepal and accordingly reclassify Ncell as asset held for sale,” reads the press statement.
Seven years ago, Axiata joined Ncell. The group, which had bought 80 percent of the shares, was in the meantime embroiled in a capital gains tax dispute. The issue was later solved. The remaining 20 percent in Ncell is held by Sunivera Capital Ventures, which is held by businessmen of Nepali origin.