In response to increasing business challenges, Malaysia-based Axiata Group has announced its decision to exit Nepal. The company has also decided to put up its 80% ownership stake in ‘Ncell’ for sale. Axiata Group’s Chief Executive Officer and Managing Director, Vivek Sood, expressed his reaction to the decision.
“As challenges in the Nepalese market continue to escalate, the board has decided to exit Nepal,” stated Axiata in a press release issued on Wednesday. “Accordingly, Ncell is up for sale.”
This move reflects Axiata’s commitment to complete its strategic priorities and strengthen its position in a more robust environment. In the press statement, it was mentioned, “This decision is in the long-term interest of all our shareholders.”
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With this step, Axiata aims to bring the company into a stronger position to fulfill its strategic priorities. The press release further added, “This decision is in the long-term interest of all our shareholders.”
In the third quarter of 2023, Axiata reported an 8% decline in Ncell’s revenue, resulting in a 6.4% year-to-date decrease in the company’s annual income. Similarly, Earnings Before Interest and Taxes (EBIT) decreased by 11.4%, while Profit After Tax and Minority Interest (PATAMI) saw a decline of 47.7%.
This strategic move by Axiata to exit the Nepalese market and sell Ncell reflects the company’s commitment to adapting to changing market dynamics and ensuring the sustained success of its core operations.