December 7, 2023 04:10 PM NPT
By: Dilip Poudel
KATHMANDU, Dec 7: Various concerns have arisen surrounding the transparency of Ncell's share purchase and sale transactions, a private telecommunications company with foreign investment in Nepal. Ncell has asserted that the enterprise value of the 80 percent of shares sold by Axiata to Spectralite UK amounts to approximately 400 million US dollars or Rs 53.20 billion.
Axiata reports having executed a purchase and sale agreement with Spectrlite, involving a base payment of 50 million US dollars (Rs 6.65 billion) and additional dividends until 2029. Ncell contends that the enterprise value of the shares sold by Axiata for 1.36 billion US dollars (Rs 143 billion) is being undervalued. With the exchange rate of Rs 133 for 1 dollar, the total is Rs 53.20 billion.
Ncell further claims that the sale of its shares underwent an open competition process. Shares in Axiata Reynolds Holdings were acquired by Satish Lal Acharya, a Nepali-origin shareholder. Acharya asserts that Spectrlite emerged as the top bidder among several competitors. According to Ncell, the pricing and structure of the share transaction were determined by the negotiations between interested buyers and sellers.