Axiata Group buys 80 per cent stake in Ncell

NEW DELHI: Malaysian telecommunication giant Axiata Group has said that it has purchased 80 per cent shares in Nepal’s most profitable private mobile operator Ncell from TeliaSonera for $1.37 billion.

Going ahead, the European telecommunication company TeliaSonera said that it sold its 60.4 per cent ownership in Ncell to Axiata for $1,030 million.

At the same time, the European telecommunication company has also agreed to dissolve its economic interests in the 20 per cent local ownership currently held by Niraj Shrestha, and receives approximately $48 million.

Nepal is one of the emerging economies with steady GDP growth in Asia. With a mobile penetration of unique subscribers of 51 per cent, the country has experienced a mobile subscriber growth at an average of 18 per cent from 2012-2014.

Ncell is the number one player in Nepal’s telecommunication market with 13 million subscribers representing 48.8 per cent of the subscriber market share.

The Nepalese telecommunication has strong cash-flow generating ability and the new move would contribute 9 per cent to its revenue and 19 per cent to its profit after tax and minority interest.

Axiata has more than 260 million customers and 25,000 employees. Ncell will complement its portfolio of Asian telecommunications assets, which includes operations in Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, India, Singapore and Pakistan. Axiata, which is listed on the Malaysian stock exchange, is a reputable company with a strong focus and expertise in South Asia and is also a long-term investor contributing to development and advancements of the countries it operates in.

In India, Axiata Group, which holds about 20 per cent stake in Idea Cellular is country's fourth largest mobile operator by customers, and led-by Kumar Mangalam Birla.