Investors

Unless defined here, capitalised terms in this announcement shall bear the same meaning as defined in previous announcements on this matter.

Reference is made to our announcements of 19 December 2019 and 13 April 2020 on the BIT Arbitration relating to the judgment of the Supreme Court of Nepal in relation to taxes imposed on Ncell.

The BIT Arbitration proceedings (ICSID Case No. ARB/19/15) commenced by Axiata UK and Ncell against Nepal involved claims under the Agreement dated 2 March 1993 between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Nepal for the Promotion and Protection of Investments related to Nepal's conduct towards Ncell in connection with Axiata UK’s acquisition of an indirect 80% shareholding in Ncell in 2016 ("Transaction").

Axiata wishes to inform that on 9 June 2023 the Tribunal rendered an Award dismissing the claims made by Axiata UK and Ncell (the "Award").  Nepal has also been ordered to pay certain sums to Axiata UK and Ncell, being a sum of approximately USD1.4 million (RM6.5 million*) to Axiata and to reimburse Ncell for the cost of a loan taken out by Ncell.  No sums are payable by Axiata UK or Ncell under the Award. (*translated at the prevailing closing exchange rate at the date of the Award, 9 June 2023 ). 

The Tribunal has indicated in the Award that Nepal should refrain from demanding any further tax, fees, penalties or interest in relation to the Transaction.

In view of the outcome of the case being unfavourable to Axiata, the Group’s statement of comprehensive income would be adjusted by approximately RM376.6 million arising from the write-off of related receivable assets. Axiata will assess any other financial impact, including further asset impairments, consequent to the Award. No cashflow impact is expected from this Award. The Award may have material impact on Axiata Group’s consolidated Net Assets per share and the Earnings per Share for the financial year ending 31 December 2023.

Axiata is consulting its legal advisors in relation to the Award and will make further announcements upon material developments arising from the aforesaid matter.

This announcement is dated 12 June 2023.