November 30: Malaysian company Axiata Group Berhad, the main investor of Ncell Axiata Limited, one of the leading telecom companies in Nepal, has announced that it will leave the company.

Axiata Group Berhad has announced that it will exit the company by selling its assets and liabilities citing falling business in Nepal.

Axiata announced the sale of shares in its quarterly report of 2023 published on Wednesday. The decision to sell the shares in Ncell has been approved by the Board of Directors meeting held on September 29, 2023. The report also mentions that the purchase and sale will be completed within 12 months after the decision to sell the shares is approved.

Axiata Group entered Nepal in purchasing the shares of Ncell from Reynolds Holding Limited of West Indies. The Malaysian company’s share in Ncell is 80 percent. The remaining 20 percent share is owned by local partner Sunivera Capital Ventures Pvt.

The data of rating agency ICRA Nepal shows that the income of Ncell Axiata Limited has continuously declined for six years. Axiata, which entered Nepal in 2016, made the maximum income in 2018.

Since then, its income has continuously declined, according to the September report of ICRA Nepal.

According to the report, the company's operating income of Rs 59.81 billion in 2018 has dropped by 37.40 percent in 2023. According to the unaudited report of the year 2023, the company has earned an operating income of Rs 37.44 billion.

According to Axiata's report, Ncell contributed 1.3 percent to Nepal's gross domestic product for the year 2021/22. The report also states that the company has paid more than Rs 283 billion in taxes to the government so far.

It is also mentioned in the quarterly report that Ncell has spent more than Rs 1.75 billion on social causes.