DHAKA: Axiata Group Berhad (Axiata or Group), one of Asia's leading telecommunications groups, marked its milestone entry into the Nepal telecommunications market through purchasing Ncell Private Limited (Ncell), the number one mobile operator in Nepal.
With its expertise, proven track record in South Asia and strategic intentions to bring long-term national development, Axiata brings together connectivity, technology and people for the broader goal of Advancing Nepal, says a press release issued by the Robi Axiata Ltd on Wednesday (April 13).
President & Group Chief Executive Officer of Axiata, Dato’ Sri Jamaludin Ibrahim said, “The unique mix of a controlling stake of a well-managed number one player in a healthy, growing market presents Axiata the perfect expansion opportunity of its footprint”.
“The addition of Ncell into the Axiata network of mobile operators marks yet another significant milestone for the Group, in terms of solidifying our strong hold in the South Asian region,” he added.
“We look forward to working with the Nepali government and regulators to further improve the quality of lives of all Nepalese, in line with the country’s ambitions,” he added.
He also hoped the company’s proven track record in contributing to national development in markets where it operated, and its extensive experience within the region will help in this regard.
“One key ambition we have is to effectively offer high-speed data connectivity, and exciting products and services to meet the demands of a young and maturing Nepali market,” he outlined.
He further said: “As a Group respected for its commitment to corporate responsibility and governance, we will play an integral role with the Nepali government and civil society, and contribute towards the socioeconomic development of the country and her people.”
In conjunction with Axiata’s entry into the Nepali market, the Group will soon launch two special edition voice and roaming products for Ncell customers.
‘Axiata Roam’, a Group-wide roaming service, will be introduced for the first time in Nepal offering discounted roaming prices to Ncell customers traveling within the Axiata footprint countries and roaming with its operating companies and partners.
With its second product, ‘Call Ayo Paisa Payo’, Ncell customers upon receiving international calls from Malaysia, Qatar, Saudi Arabia and the United Arab Emirates (UAE) lasting for more than five minutes, will receive attractive bonus balance.
Simon Perkins, Axiata’s new Managing Director at Ncell said, “We aim to serve the people of Nepal, focusing on improvements to the network and coverage quality, technology rollout, go-to-market strategies, innovative product development, human resource and efficient procurement processes, based on our experience in similar markets, together with nurturing and developing local talent.”
Through its wholly-owned subsidiary, Axiata Investments (UK) Limited, Axiata completed the acquisition from TeliaSonera UTA Holdings B.V. (TeliaSonera) and SEA Telecom Investments B.V. of Reynolds Holdings Limited (Reynolds).
The acquisition of Reynolds for the purchase price of $1.365-billion plus customary adjustments at closing, effectively secures Axiata an 80 percent equity interest and controlling stake in Ncell.
All the terms of the sale and purchase agreement were met for the completion of the transaction including approvals from all relevant regulatory authorities in Nepal and Malaysia.
Axiata enters the Nepal market with its local partner, Sunivera Capital Ventures Pte Ltd (Sunivera), holding 20 percent direct local shareholding in Ncell, as required under local law.
Local partner transaction completion was a condition precedent to Axiata’s acquisition of Ncell.
BDST: 1935 HRS, APR 13, 2016
MIH/SR
