Analysts had said Axiata would have to accept the offer unless it was able to find a partner to fund a counterbid since M1 was a non-core asset. The 28.67% stake comprises 265.41 million shares.
KUALA LUMPUR: Axiata Group Bhd
has confirmed that the Supreme Court of Nepal has issued its full written judgment in relation to the public interest litigation (PIL) concerning the former's buyout of Ncell Private Ltd.
Axiata said in a statement that it is reviewing the decision of the Supreme Court while noting that it and subsidiary Ncell have complied with all relevant regulatory and legal requirements in relation to the transaction.
On Feb 6, the SC ordered Ncell and Axiata to pay capital gains tax of 61 billion rupees (RM2.16bil), excluding late fees, for the indirect transfer of an 80% stake in Ncell to Axiata UK via the purchase of Reynolds Holdings Ltd from TeliaSonera Norway Nepal Holdings AS.
"The Order states that the Large Taxpayers Office (LTPO) should determine the outstanding tax amount to be paid in relation to the Transaction within three months from the date of receipt of the Order by the LTPO and that the responsibility to pay tax lies with Ncell and Axiata, the latter who is not a party to the PIL.
"The SC also indicated that distribution of dividends and any sale of Ncell shares by anyone should not be granted until the tax obligation is satisfied," said Axiata.
The group added that it has made significant contributions to the socio-economic development of Nepal and remains committed as a long-term investor in the country.
"As the largest taxpayer, contributing NPR 125. 68 billion (USD 1.17 billion) in taxes since Fiscal Year FY 2014/2015, we believe that the Government of Nepal will be supportive of our commitment and use our investment as a demonstration of the willingness and openness of Nepal to attract further foreign investment," it said.
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