Telecom major TeliaSonera has decided to sell its indirect stake in Nepal Satellite, a regional operator in Nepal, to Zhodar Investment. But it will focus on Ncell in Nepal.
Regulatory issues prompted the European telecom major to exit from Nepal Satellite.
“Over the past year, uncertainty regarding the regulatory and legal environment for consolidation and granting of licenses in Nepal has increased. Pursuing an acquisition of Nepal Satellite is therefore not considered possible for regulatory reasons,” said TeliaSonera in a statement.
As a result of the sale, TeliaSonera will report a loss of SEK 0.4 billion.
TeliaSonera’s effective ownership of 57 percent in Nepal Satellite is the result of acquisitions made in 2011 and 2012. The purpose of the acquisition was to strengthen TeliaSonera’s operations in Nepal with a complementary brand.
TeliaSonera is the majority owner of mobile operator Ncell which has around 10 million subscriptions. Sales in Ncell were SEK 2.7 billion in 2012.