Axiata Group Berhad (Axiata) announced expansion of its regional footprint and entry into the Nepal market through acquisition of the Himalayan nation’s number one mobile operator, Ncell Private Limited (Ncell).
Robi Axiata Dhaka office yesterday in a statement confirmed the news.
Ncell is the number one operator in Nepal with a stronghold of close to 57.5% revenue market share and 48.8% subscriber market share.
Through its wholly-owned subsidiary, Axiata Investments (UK) Limited, Axiata has entered into a conditional sale and purchase agreement with TeliaSonera UTA Holdings BV and SEA Telecom Investments BV for the 100% acquisition of Reynolds Holdings Limited (Reynolds).
According to the statement, the acquisition of Reynolds for the purchase price of $1.365 billion plus customary adjustments at closing effectively secures Axiata with an 80% equity interest, a controlling stake in Ncell.
Industry insiders said Nepal is one of the emerging economies with steady GDP growth in Asia. With a mobile penetration of unique subscribers of 51%, the country has experienced a mobile subscriber growth at an average of 18% from 2012-2014.
Following the acquisition, Axiata will have contiguous presence and reach 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 from 2682 million today.
President & Group Chief Executive Officer of Axiata, Jamaludin Ibrahim said: “As with all our investments, we see our entry into Nepal as a long-term strategic move for the Group.
At the same time, Axiata is also committed to playing a major part in the development of the country by offering high-speed data connectivity and products on a 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 enters the Nepal market with a local partner holding 20% direct local shareholding in Ncell as per the local law. The partner is an independent party familiar to the Group and well-versed in telecommunications industry and regulatory environment in Nepal.