Investors

Reference is made to our announcements of 22 April 2019, 26 April 2019, 8 May 2019, 22 November 2019 and 19 December 2019.

Axiata Group Berhad (“Axiata”) previously announced that, on 21 November 2019, the Supreme Court issued its full written judgment on the writ petition filed by Ncell, Axiata’s indirect 80%-owned Nepalese subsidiary, against the Large Taxpayers Office (“LTPO”) and others on 22 April 2019 (“SC Judgment”). The SC Judgment held that Ncell is liable to pay  NPR 21,103,971,565 (approximately US$ 175 million) in allegedly outstanding capital gains tax (“CGT”) (including interest and penalties) in connection with the sale in 2016 by TeliaSonera Norway Nepal Holdings AS to Axiata Investments (UK) Limited ("Axiata UK") of 100% of the shares of Reynolds Holdings Limited, a St Kitts & Nevis company which owns 80% of the shares of Ncell (the "Transaction").

Axiata also previously announced that, on 6 December 2019, the LTPO served a demand letter against Ncell in which the LTPO demanded that Ncell pay the sum of NPR 22,445,397,955.05 (approximately US$ 185 million) (“Demand Amount”) in satisfaction of the SC Judgment.

Axiata wishes to announce that Ncell had, on 12 April 2020 finally settled the Demand Amount and an additional sum of NPR 990,254,590.95 as interest (collectively, the “Total Amount”). Ncell’s payment of the Total Amount was made under protest and expressly without prejudice to Ncell and Axiata UK's position in the international arbitration proceedings commenced by Ncell and Axiata UK against the Federal Democratic Republic of Nepal (“Nepal”) ("BIT Arbitration").

In the BIT Arbitration, Ncell and Axiata UK dispute the entirety of the CGT allegedly payable by Ncell in connection with the Transaction and will argue, among other things, that the imposition of CGT by Nepal in relation to the Transaction is unlawful. Axiata UK and Ncell will seek remedies including restitution of sums already paid, a permanent injunction against further attempts to collect CGT from Ncell in connection with the Transaction and damages for all losses suffered in consequence of Nepal's unlawful conduct.

This announcement is dated 13 April 2020.