Sun. Jul 21st, 2024
ncell axiata

 

 

Axiata’s Exit from Nepal

Axiata Group Berhad decided to exit Nepal, selling most of its Ncell Axiata Limited ownership to Spectrlite UK Limited for $50 million.

Controversy and Legal Dispute

However, this decision sparked both controversy and a legal dispute with Nepali authorities, revolving around concerns about unfair taxes and uncertain rules.

CEO’s View

Axiata’s Group CEO, Vivek Sood, highlighted substantial changes, drawing attention from Nepal’s NTA and Axiata’s subsidiary, Ncell Nepal.

Regulatory Concerns

A potential legal fight looms as Axiata might not have informed NTA about the Ncell Axiata sale, raising concerns about regulatory compliance.

International Legal Situation

This legal situation extends beyond Nepal, involving Spectrlite UK owned by Satish Lal Acharya, a Nepali person in Singapore.

Transparency Questions

Amid these events, persistent questions arise about the deal’s transparency. Axiata’s hesitancy to disclose all sale details, including the final price and buyer gains until 2029 for both Ncell and Axiata Nepal, adds to the ongoing scrutiny.

NTA’s Approval Demands

Adding complexity, the National Telecommunications Authority (NTA) insists that any deals involving over 5% of Ncell Axiata’s ownership require approval, further complicating this intricate scenario.

Post-Exit Thoughts

As the dust settles, NTA, led by Purhusottam Khanal, contemplates next steps, with potential legal challenges for Ncell and Axiata.

Business Complications

Navigating tax considerations, ownership transitions, and legal disputes creates a challenging scenario. Ncell Axiata’s future remains uncertain.

Global and National Implications

Against global tensions, Axiata’s departure raises questions about rules, taxes, and how Nepal manages foreign companies like Axiata, prompting discussions about foreign investments’ impact on Nepal’s telecom landscape.

 

By admin

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