Axiata exits Nepal by selling it stake in Ncell

KATHMANDU, DECEMBER 1: Axiata, a Malaysian telecom giant, has exited Nepal by selling its 80 percent stake in Ncell. According to reports, the very stake was sold to Spectralight Communications Ltd. based in the UK at US $ 50 million (Rs 6.66 billion).

The Malaysian company pulled out its Nepal venture by citing losses in business and other challenges. According to Axiata, Nell’s year-to-date (from early 2023 to the third quarter) revenue declined by 6.4 percent thanks to lower domestic interconnect rates. Similarly, the telecom company owes Rs 34 billion to various banks and financial institutions in the country.

Axiata entered Nepal in 2016 by  acquiring the stake of Ncell at US $ 1.36 billion (Rs 143 billion if calculated based on the then foreign exchange rates)