Axiata Group Berhad (Axiata) announced the expansion of its regional footprint and entry into the Nepal market through the acquisition of its 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).
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. 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.
Post-acquisition, Axiata will 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 billion1 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, Dato’ Sri 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 in 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 required under local law. The partner is an independent party who is familiar to the Group and well versed with the telecommunications industry and regulatory environment in Nepal. The transaction is expected to close by first half 2016.
About Axiata
Axiata is one of the largest Asian telecommunications companies. Axiata 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. The Group, including its subsidiaries and associates, has over 260 million mobile subscribers in Asia. The Group revenue for 2014 was RM18.7 billion. The Group provides employment to over 25,000 people across Asia. Axiata’s vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia. The Group has expanded its portfolio of business which now includes a communications infrastructure solutions and services company called “edotco” and a digital services company, Axiata Digital Services. Axiata was awarded the Frost & Sullivan 2009, 2010, 2011, 2012, 2013 and 2014 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 and 2011 for its operations in multiple Asian markets.
About Ncell
Present across all the 75 districts of Nepal, Ncell is the leading GSM operator in the country, with over 12.8 million mobile subscriptions (as of July 2015) and 2015 sales of over USD 500 million (NPR 57.728 billion). Ncell is Nepal’s biggest tax payer and has over 520 employees.
Since October 2008, Ncell has been part of TeliaSonera, a leading European telecommunication company present in 17 markets, including the Nordic and Baltic countries, the emerging markets of Eurasia, and Spain.