TeliaSonera, the Swedish operator, has decided to sell its indirect stake in Nepal Satellite Telecom, a GSM operator, and focus instead on its other Nepalese mobile unit, Ncell. Its 57% interest, built between 2011 and 2012, will be sold back to Zhodar…
TeliaSonera, the Swedish operator, has decided to sell its indirect stake in Nepal Satellite Telecom, a GSM operator, and focus instead on its other Nepalese mobile unit, Ncell.
Its 57% interest, built between 2011 and 2012, will be sold back to Zhodar Investment for an undisclosed amount. But TeliaSonera said it will book a loss of approximately SKr400m (US$61m) on the sale. The company also noted that Nepal Satellite’s operations are so limited that its consolidated financial statements will not be affected by the deal.
UBS, Norton Rose Fulbright, and K&L Gates have been principal advisers in the transaction, which is expected to close within a month.
The decision to sell the small Nepalese operator was motivated by greater “uncertainty regarding the regulatory and legal environment for consolidation and granting of licences in Nepal”, the Swedish company said. “Pursuing an acquisition of Nepal Satellite is therefore not considered possible for regulatory reasons.”
Instead, the operator plans to focus on Ncell, the country’s largest mobile operator, “which reduces the business risk and complexity of TeliaSonera’s total involvement in Nepal”.
Ncell claimed around 10 million subscriptions and sales of SKr2.7bn (US$412.7m) in 2012. Its main competitor is stated-owned Nepal Telecom.
About 18 months ago, TeliaSonera further increased its ownership in Ncell to above 70%. The Stockholm-listed company made the initial investment in Nepal in September 2008.
