Ncell has issued a list of “facts” regarding the Axiata-Spectrlite UK deal. Additionally, the company has delightfully expressed that it’s becoming a 100% Nepali-origin entity and will focus on creating value for the customers.
Since Axiata announced on December 01 that it has reached a deal with Spectrlite UK to sell its stake in Ncell, the agreement has drawn controversy. Much has been said about the value of the deal being $50 million and the lack of compliance with the prevailing provision regarding the sale of shares. The telco has listed “facts” in its attempt to clarify all the scrutiny.
- The Deal Was Done on a Willing Buyer And Seller Basis
Ncell says that the Axiata-Spectrlite UK deal was carried out on a willing buyer and seller basis and deserves no interpretation pointing to anything else. It also adds that Axiata will receive a base payment (which presumably is the fixed consideration of $50 million) and benefits in the form of profit-sharing for the next five years till 2029.
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The total worth of the Axiata-Spectrlite UK deal is $400 million
- Ncell stakes is actually worth $400 million
The telco mentions that in total, the total worth of the deal with Spectrlite will reach $400 million. Quoting Satish Lal Acharya (a Nepali-origin entrepreneur based in Singapore), the shareholder of Spectrlite UK, Ncell says, “Axiata ran a competitive process for the sale of its shares in Reynolds Holdings (a St Kitts company), with Spectrlite emerging as the winner amongst several bidders. The pricing and structure of the transaction were determined on a willing buyer and seller basis. As per the agreed deal structure, Axiata is set to receive a base payment, along with additional benefits in the form of profit-sharing for the next five years, extending until 2029.”
- The Deal Signifies a New Evolution of Ncell
Ncell adds that the upcoming change in ownership of the telco will have a transcendental effect. Not only it would mean a managerial shift, but also drive up its ambitions further. “The transaction places the Enterprise Value of Ncell at approximately $400 million, to be realized gradually over time contingent upon the company’s performance. Beyond the financial aspects, this transformative deal signifies the evolution of Ncell towards a greater Nepali-origin ownership and management,” the telco said.
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- Fulfilled All The Tax Duties
Ncell says that it has fulfilled all of its tax obligations to date as verified by the Tax Office. Likewise, all the taxes applicable in this deal “will be handled in strict accordance with the laws of Nepal.” The company says that it is committed to conforming with tax rules in this transaction and will reassure stakeholders of its financial practices in full integrity. The company is currently in cooperating with Nepal Telecommunications Authority (NTA) to obtain the necessary consents. You may want to read: Ncell Contributes Rs 144 Billion in Tax to Nepal in 5 Years
- No Impact on Customer Services
Ncell says that amidst all the scrutiny and upcoming changes in ownership, the services will resume uninterrupted. The users and industry experts have been curious if there will be any impact on the telco’s services with the coming changes. The company assures that it won’t be the case. “While changes are occurring at the Ncell, customers can rest assured that this will have no impact on the quality of services provided. The company remains fully committed to delivering high-quality services to all its customers,” Ncell said in a statement.
Check out: Important numbers/USSD codes in Ncell for subscription, offers
Ncell looking ahead
Ncell has exhibited a strong commitment to future prospects and will diversify its digital services to elevate the lives of millions of Nepalese. The telco will strengthen its initiative of expanding network infrastructure beyond mobile connectivity which reflects the opportunities that lie ahead in the country.
Ncell says that it’s not just adapting to the changes but will actively contribute to the digital evolution of Nepal with its transformative change.
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Ncell Employee Trade Union welcomes the deal
Axiata announced its decision to leave Nepal by selling its 80% stakes in Ncell citing adverse business challenges. However, the development has spiraled dividing the opinion. The government has raised suspicion about the integrity of the deal and the real intent behind selling the company at such a low price. But recently, Ncell Employee Trade Union has rejected any possible wrongdoing and criticized the way the transaction between Axiata and Spectrlite UK has been interpreted.
The union said, “With the entry of Nepalese investors into the company through Spectrlite UK Limited, we will move forward with new vigor and vigilance and would like to welcome the new investor Spectrlite UK.” We appeal to all customers, business partners, and general Nepali people of Ncell to be aware of the propaganda that changes in shareholding means the company no longer exists in Nepal.” It also added that the company has fulfilled all of its tax duties paying over 2.83 trillion in taxes and other fees since its inception and will continue to adhere to the prevailing laws.
Government starts investigation into the Axiata-Spectrlite UK deal of Ncell stake sale
In the latest development, the government of Nepal has officially started an investigation into the Axiata-Spectrlite UK deal over the sale of Ncell stake. On Mangsir 21, a high-level investigation committee was formed under the coordination of former auditor general Tankamani Sharma (Dangal). the committee will conform to the government’s mandate during its investigation. Sharma said that the committee will discuss with regulators, government officials, and service providers in its investigation. He shared that the team will gather all the necessary paperwork and information, and discuss with industry experts, organizations, and individuals before submitting its report. The committee will turn in its report to the government within one month.
Do read: Ncell VoLTE Commercially Launched | How to Activate
Axiata’s sale of Ncell has dominated the media since the news of the deal broke. We are closely keeping tabs on all the developments and will update everything relevant to this news. Do you think this deal deserves as much attention as it’s getting right now? Do share your honest opinion in the comment below.
