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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
'sub_title' => '',
'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
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December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.
It seems that the purchase and sale of Ncell’s share will court controversy.
The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.
Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell.
After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.
According to NTA, Rule 14 of the Telecommunication Regulations 2054 states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.
Aziata said it has sold 80 percent of Ncell's shares to Spectrlite UK Ltd, a company registered in the UK. Axiata has informed that Spectrlite UK will receive USD 5 million (about Rs 668.1 million) from the sale of shares in six months and the remaining amount after 48 months. Spectrlite UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that Spectrlite UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a 20 percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of Spectrlite UK, Acharya now owns 100% shares of Ncell.
Axiata bought the ownership of Ncell in 2016from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs 143 billion. Ncell's license period is expiring in 2029. According to the agreement between Axiata and Spectrlite UK, Axiata will receive the dividend received by Ncell until 2029.
Ncell's net profit was Rs 5.16 billion during the last fiscal year (FY) when the operating income was Rs 39.72 billion. In the year 2023, Ncell has earned more than Rs 37.44billion (unaudited report).
Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.
The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer Spectrlite UK.
A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by 2029.
Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.
Axiata said it paid Capital Gains Taxes or Rs 47 billion for the purchase of 80 percent of Ncell's shares in 2016 although the seller was liable to pay the amount. Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.
However, the Large Taxpayers Office has determined an additional tax of Rs 57.90billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.
It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to 25,000 people and served 17 million customers.
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'title' => 'Ncell Selling Shares Purchased for Rs 143 billion at Throw-Away Price of Rs 6 Raises Suspicion',
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'summary' => 'December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD 1.38 billion (about NPR 143 billion) in 2016, sold its shares seven years later at a throw-away price of USD 50 million (about Rs 6.68 billion according to Friday’s exchange rate), raising quite a few eyebrows.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">December 3: Malaysia's telecommunication conglomerate Axiata Group, which bought Ncell's shares for USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">(</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">about NPR </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion) in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, sold its shares seven years later at a throw-away price of USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">50</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">6.68</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion according to Friday’s exchange rate), raising quite a few eyebrows.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It seems that the purchase and sale of Ncell’s share will court controversy.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The Malaysian company has cited lack of working environment in Nepal for its decision to exit Nepal while the government officials suspect that selling a profitable company at a much lower price than the purchase price may be for ‘tax evasion’.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Nepal Telecommunication Authority has sent a letter to Axiata telling the company that it did not acquire permission to sell the shares of Ncell. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">After the news of Axiata's withdrawal from Ncell became public, the authority had written to Ncell on Friday to follow legal procedures to sell its stakes in the company.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to NTA, Rule </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">14</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> of the Telecommunication Regulations </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2054</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> states that a telecommunication service provider company must obtain approval from the authority when transferring share ownership. Axiata has not revealed anything about this issue.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Aziata said it has sold </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares to </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK Ltd, a company registered in the UK. Axiata has informed that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">will receive USD </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million (about Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">668.1</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> million) from the sale of shares in six months and the remaining amount after </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">48</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> months. </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">UK has expressed its pleasure to purchase the shares of Ncell. The company director Satishlal Acharya stated that </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK is happy to announce the agreement for the acquisition of Ncell's shares and said that it will work with Ncell's management to use its experience in the telecommunication sector for innovation, investment and to provide services to the Nepalese people. Acharya is a citizen of Nepali origin living in Singapore. Sunivera Capital Ventures already has a </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">20</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent stakes in Ncell. Acharya is the director of Sunivera Capital Ventures. With the involvement of </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span>UK,<span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> Acharya now owns </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">100%</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> shares of Ncell.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata bought the ownership of Ncell in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">from the Swedish company TeliaSonera. At that time, Ncell was valued at around Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">143</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. Ncell's license period is expiring in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the agreement between Axiata and </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK, Axiata will receive the dividend received by Ncell until </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Ncell's net profit was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.16</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion during the last fiscal year (FY) when the operating income was Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">39.72</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion. In the year </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2023</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">, Ncell has earned more than Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">37</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">44</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion (unaudited report). </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Government officials have been critical towards Axiata’s decision to sell a profit-making company at a scrap value.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The statement issued by Axiata states that if the government claims any taxes from Ncell in the future, it will be borne by the buyer </span></span><span style="font-size:13.5pt"><span style="font-family:"Arial","sans-serif"">Spectrlite </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> UK.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">A corporate law expert argued that Axiata may have decided to exit due to the double taxation of Ncell and the risk of the company's license expiring by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2029. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claimed that the government imposed taxes repeatedly and complying with the regulation meant the company was subject to double taxation.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata said it paid Capital Gains Taxes or Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion for the purchase of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">80</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent of Ncell's shares in </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2016</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> although the seller was liable to pay the amount</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">. </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Axiata claims it fulfilled all its tax obligations to the Government of Nepal as per the law.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the Large Taxpayers Office has determined an additional tax of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">57</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">90</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion for Ncell. Not satisfied with this, Ncell has filed a writ in the Supreme Court. The matter is sub judice.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">It is mentioned in the statement issued by the company that Ncell has contributed greatly to the economic and social development of Nepal. The statement also mentions that Ncell has directly and indirectly provided employment to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">25</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">,</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">000 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">people and served </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">million customers.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'User' => array(
'password' => '*****',
'id' => '34',
'user_detail_id' => '1',
'group_id' => '1',
'username' => 'neeraj.roy@newbusinessage.com',
'name' => null,
'email' => 'neeraj.roy@newbusinessage.com',
'address' => null,
'gender' => null,
'access' => '1',
'phone' => null,
'access_type' => null,
'activated' => true,
'sortorder' => null,
'published' => null,
'created' => '2020-07-19 16:40:23',
'last_login' => '2024-08-13 13:55:06',
'ip' => '172.69.41.137'
),
'ArticleComment' => array(),
'ArticleFeature' => array(),
'ArticleHasAuthor' => array(),
'ArticleHasTag' => array(),
'ArticleView' => array(
(int) 0 => array(
'article_id' => '19622',
'hit' => '1871'
)
),
'Slider' => array()
)
$current_user = null
$logged_in = false
$xml = false
simplexml_load_file - [internal], line ??
include - APP/View/Elements/side_bar.ctp, line 133
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/view.ctp, line 391
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117