Axiata Planning to Flee by Selling Ncell Shares Due to Poor Financial Condition

Kathmandu. A Malaysian company called Axiata is preparing to run away by selling the shares of Ncell  due to billions of rupees loans from banks and bad financial conditions. The media, including Beemapost, had published news about Ncell’s financial situation being bad, it’s liabilities and assets being equal, and billions of rupees of bank loans being at risk.

On Wednesday, 29th November, 2023A.D a news came out in this regard, that “Exiata is planning to take Exit”. Many people are expressing interest and concern, it has been revealed that Axiata is preparing to run away, leaving around 50 billion rupees to be paid by Ncell to Nepal’s banks and vendors.Bivek Sood, the chief executive officer of Malaysia-based Ncell, revealed that he was preparing to leave Ncell because it was very difficult to operate in Nepal.

Axiata has already received the dividend according to its investment in Nepal, on the other hand, Ncell is about to leave Nepal due to the expiry of its license and increasing debt in banks.Ncell has taken more than 20 billion in short-term and long-term loans from various banks in Nepal. Similarly, the audit report of Ncell has shown that the amount owed to various parties in Nepal alone is more than 26 billion rupees.

Ncell has taken more than 20 billion in short-term and long-term loans from various banks in Nepal. Similarly, the audit report of Ncell has shown that the amount owed to various parties in Nepal alone is more than 26 billion rupees.Another reason for Axiata running away after selling Ncell is the failure of the plan to extend the license period by buying Smartcell. Axiata would have stayed in Nepal if they had been able to increase the price of the license by purchasing smart cells.

However, due to the media frenzy, after the task of handing over the Smart Cell auction to Ncell was not successful, it seems that Axiata is very stressed about Ncell’s investment and is about to run away by selling its shares.Ncell’s term is ending in 2086 B.S (2029 A.D). After that, Ncell should be handed over to the government of Nepal. That is why Ncell has not added new equipment recently. However, last mid of June 2022 A.D, due to a complaint filed with the Nepal Telecommunication Authority regarding the quality of 4G service, 458 new towers were forced to be added.

As most of Ncell’s towers are old and their performance is very low, billions of rupees need to be invested to move them forward in the long term. On the one hand, the limit of borrowing from the bank is over and on the other hand, Axiata was in a difficult situation in Ncell as it had to invest billions of rupees immediately.