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Teliasonera divests its stake in Nepal

Xinhua, December 22, 2015 Adjust font size:

KATHMANDU, Dec. 21 (Xinhua)- Sweden based company Teliasonera has initialed a deal worth 1.4 billion USD with Malaysian company Axiata to sell its ownership in Nepalese telecommunication service provider-Ncell.

This is the biggest corporate deal in the history of Nepal. Ncell is the first private sector company operataing mobile service in Nepal.

According to Teliasonera it will sell 60.4 percent (around 1.03 billion USD) stakes to Axiata. Teliasonera will dissolve its economic interest in the 20 percent local ownership and receive 48 million USD). As per Nepal's regulation, Nepalese national or company has to hold 20 percent of the ownership in a telecom company.

According to Teliasonera, the Nepalese stake will be sold to Bhawana Singh Shrestha, a Nepalese citizen of Sunivera Capital Ventures Pte Ltd, a Singapore registered company. The Singapore based company is purchasing local stakes of Ncell following a consent from the Axiata which is taking commanding stakes in Ncell. Teliasonera said that the mega deal is likely to close within the next six months.

Salomon Bekele, senior advisor, CEO Office of Teliasonera, who is in Nepal, told the journalists, "We expect to close the overall process by mid-2016."

With two companies initialing the deal, Teliasonera now will notify the development to Nepal Telecommunications Authority (NTA), the telecommunication sector regulator in the country and the Department of Industry (DoI).

On September this year, Teliasonera had announced that it would take an exit from the Eurasian markets, including Nepal.

"In September we announced our ambition to reduce our presence in our seven Eurasian markets and focus on our operations in the Nordics and Baltics, within the strategy of creating the new TeliaSonera. Today, I am very pleased to announce a first step and proof point in this reshaping of TeliaSonera," Teliasonera's President and Chief Executive Officer Johan Dennelind said in a statement on Monday. "I am also glad to see Axiata as a new owner. That gives me comfort that our dedicated employees are in good hands when taking Ncell to the next level."

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.

Ncell CEO Erim Taylanlar in a letter dispatched to Ncell corporate customers on Monday said the announcement will not affect Ncell's operations. "Ncell will continue exercising its best effort in serving its customers and providing high quality communication solutions in Nepal. We remain committed to our responsibilities towards our customers, employees, and the county and society in general," the letter reads.

TeliaSonera entered Nepal in 2008, acquiring a controlling stake (80 percent) in then Spice Nepal Private Limited. Established in 2004, Spice Nepal was Nepal's first private mobile operator and launched its services under "Mero Mobile" brand in 2005. Following the acquisition, "Mero Mobile" was re branded to Ncell on March, 2010. Ncell has been the largest tax payer to the Nepal government for the last three years. Enditem