KUALA LUMPUR (July 12): Axiata Group Bhd said it had not received Nepal's central bank's directive that bars Axiata from repatriating its dividends.

Mobile telecommunication network provider Axiata said this today in response to news reports, which quoted Nepal Rastra Bank officials as saying the central bank had barred Axiata from repatriating its dividends until the issue of capital gains tax (CGT) related to Axiata's unit Ncell Pvt Ltd deal was settled.

Axiata told Bursa Malaysia today: "Axiata wishes to clarify that it has not received any official communication or direction from Nepal's central bank or relevant Nepali authorities on the matter."

"Axiata is confident that the Government of Nepal will not discriminate and contradict the aegis of the Bilateral Investment Treaty by blocking Axiata from repatriating its dividends rightfully due to the group as foreign investor in the country," Axiata said.

Axiata said it had announced to Bursa Malaysia on June 5 this year that Nepal's Large Taxpayers Office (LTPO) had confirmed that Ncell had fulfilled its tax obligations.

"As announced by Axiata to Bursa Malaysia Securities Bhd on June 5, 2017, Nepal's Large Taxpayers Office (LTPO) in its confirmation letter to Ncell Private Limited (Ncell) conclusively certified and acknowledged that Ncell is fully cleared of CGT payment with the further advance deposit of approximately NPR13.6 billion paid to the LTPO as directed by the agency," Axiata said.

At Bursa Malaysia today, Axiata shares fell two sen or 0.4% at 12:30pm to RM4.62 for a market capitalisation of RM41.48 billion. The stock saw 1.35 million shares traded.