NCell did nothing wrong. NCell is a victim ➤

NCell did nothing wrong. NCell is a victim

NCell did nothing wrong. NCell is a victim

I don’t understand why people are after NCell. What NCell did was nothing wrong. In fact, NCell (Axiata) faced national-level bullying. Back then, NCell was controlled by a Norwegian company. They didn’t directly invest in NCell; they invested through a holding company (Reynolds Holding Ltd.) based in a tax-haven country. Axiata took over NCell by purchasing Reynolds Holding Ltd. Capital gain tax is paid by the seller; however, Axiata was forced to pay the capital gain tax (1). This is like, you purchased a share in NEPSE for Rs 200, and instead of the seller, you are forced to pay the tax. While NCell is labelled as tax evader, they are one of the higest tax payer in Nepal.

**Now let’s look at the current situation.**

Axiata decides to exit. Suddenly, people are butt-mad. Some even filed a writ order against NCell to stop sales. Well, this is beyond the jurisdiction of the Nepali government or even the constitution. An entity is free to sell its assets. Again, this takeover isn’t happening in Nepal. The 80% sale is happening through that holding company (Reynolds Holding Ltd.). And the Nepali government cannot stop sales or purchases. I wonder how no one even understands this. And is filing the case for cheap populairty.

**NCell Valuation**

NCell was sold for 6arba something. Many call it dirt cheap. Some politicians even came forward and said the government should buy it or IPO it. I wonder how even these politicians are not aware that, as per the agreement, after 25 years (which is 6 years from now), all Renold Holding assets will be transferred to the Nepali government. If Axiata sells their holding today, they get 6 arba. If Axiata holds, after six years they will get 0 and all their holdings will be transferred to the government. What would they choose? 6Arab or 0? The current buyer has 6 years to recover their investment.

Their operating income was 57,102 million back in 2017; as of 2023, it is 37,442 million. And it is estimated to go lower, not only in Nepal but also globally (3) (4).

After 6 years Nepal Government will have absolute monopoly in telecom, they might even merge NCell with NTC.

There are bigger issue like bhutani sarnarthi, 100kg sunkanda, tea estate kanda which makes NCell amount look peanuts.

This is the reason foreign companies doesn’t want to invest in Nepal. Nepal has higest corporate tax rate and red tapes everywhere. On the other hand, neighbouring countries are giving tax discounts for FDI.


1. [](
2. [](
3. [\_Ncell-Axiata\_Fresh-BLR\_March-2021.pdf](
4. [\_BLR-Surveillance\_September-2023.pdf](

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