07 Feb 2019
KUALA LUMPUR – Axiata Group Berhad (“Axiata” or “the Group”) refers to the various articles in relation to the decision by the Supreme Court of Nepal on two writ petitions by NCell Private Limited (“Ncell”) and Reynolds Holdings Limited (“Reynolds”), and two Public Interest Litigations (“PIL”) brought against various parties in relation to the Capital Gains Tax (“CGT”) claim following the completion of the sale of Reynolds to Axiata Investment (UK) Limited (“AXIATA UK”) on 12 April 2016 (the “Transaction”).
Reynolds is the 80% parent company of Ncell, formerly owned by Telia Company, a large European telecommunications group (the “Seller”).
The Supreme Court had in its ruling on 6 February 2019, dismissed both the writ petitions by Reynolds and Ncell, and one of the PIL. However, Axiata understands that the Court has ruled in favour of the PIL filed by Mr Dwarikanath Dhungel and others broadly pleading that the onus of CGT is on Ncell, Reynolds and Axiata UK.
None of the Axiata parties to the litigation has received the judgment and order of the Supreme Court following its ruling, nor does the Group have any details of what was ordered by the Supreme Court.
Ncell, Reynolds, and Axiata UK were given the full clearance by the Large Tax Payers Office of Nepal [“LTPO”] of its obligations to withhold any CGT payment on behalf of the Seller in relation to the Transaction via the letter from LTPO dated 4 June 2017, following the full and final payment made by Ncell, albeit under protest on the basis that CGT is not applicable on offshore transactions and even if applicable, any shortfall on payment is the responsibility of the Seller.
Axiata will provide further updates upon receiving the order of the Supreme Court.
About Axiata
As one of the leading telecommunications groups in Asia in pursuit of its vision to be the New Generation Digital Champion by 2022, Axiata has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a Triple Core Strategy driven business focusing on Digital Telco, Digital Businesses and Infrastructure.
Within ASEAN and South Asia, the Group has controlling stakes in market-leading mobile and fixed operators in the region including ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and 'Ncell' in Nepal. Axiata is actively spearheading efforts to transform its mobile-centric operations into digital converged companies.
Axiata’s digital businesses are focused on three verticals namely Digital Financial Services (‘Boost’), Digital Advertising (‘ada’) and Digital Platform (‘APIgate’) in the global market.
‘edotco’, the Group’s infrastructure company, operates in six countries to deliver telecommunications infrastructure services, amassing approximately 27,500 towers. Presently the 12th largest independent tower companies globally, it aims to be one of the top regional telecommunications tower companies and is committed to responsible and sustainable business operations.
As a committed and long-term investor, and in line with its sustainability goals, the Group actively supports and drives young talent development; disaster response and recovery; as well as green initiatives. Axiata’s broader goal of Advancing Asia aims to piece together the best in the region in terms of innovation, connectivity and talent. For further information on Axiata visit www.axiata.com
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