Axiata acquires 80% stake in Nepal’s Ncell

Axiata Group Berhad (Axiata), the parent company of Robi, has made a foray into Nepal’s telecoms market by acquiring the country’s number one mobile operator Ncell Private Limited (Ncell).

“Through its wholly-owned subsidiary, Axiata Investments (UK) Limited, Axiata has entered into a conditional sale and purchase agreement with TeliaSonera UTA Holdings B.V. and SEA Telecom Investments B.V. for the 100% acquisition of Reynolds Holdings Limited (Reynolds),” the company said in a media release.

The acquisition of Reynolds for the purchase price of $1.365 billion gave Axiata an 80 percent equity interest and controlling stake in Ncell, the release said.

With a mobile penetration of unique subscribers of 51 percent, Nepal has experienced a mobile subscriber growth at an average of 18 percent from 2012-2014.

Ncell is the number one operator in Nepal with a stronghold of close to 57.5 percent revenue market share and 48.8 percent subscriber market share.

Following the acquisition, Axiata will now have contiguous presence and reach in five key countries across South Asia.

“Axiata’s combined footprint in South East Asia and South Asia will cover a total population of 1.77 billion and further solidify the Group as one of the leading mobile operators in the region with over 280 million customers.”

President and CEO of the group Jamaludin Ibrahim said, “Axiata is committed to playing a major part in the development of the country by offering high-speed data connectivity and products at par with its economic progress. Being a responsible corporate citizen and major contributor to the country’s economy is key to our long-term vision.”

Axiata is one of the largest Asian telecommunications companies.

It has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore.

The group’s mobile subsidiaries and associates operate under the brand name ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia, ‘Idea’ in India and ‘M1’ in Singapore.