KUALA LUMPUR (April 13): Axiata Group Bhd has settled the US$185 million (RM800.2 million) demanded by the Nepalese government as outstanding capital gains tax, along with another 990.3 million Nepalese rupees (RM35.3 million) in interest, in relation to the group’s purchase of an 80% stake in Ncell Private Ltd.

In a filing with Bursa Malaysia, Axiata said it had made the payment “under protest, and expressly without prejudice” to the position of its unit Axiata Investments (UK) Ltd (Axiata UK) and Ncell in international arbitration proceedings initiated by them against the Nepal government.

“Axiata UK and Ncell will seek remedies including restitution of sums already paid, a permanent injunction against further attempts to collect [capital gains tax] from Ncell in connection with the transaction and damages for all losses suffered in consequence of Nepal's unlawful conduct,” it added.

The capital gains tax is in relation to Axiata UK’s 2016 acquisition of Reynolds Holdings Ltd, which owned the 80% stake in Ncell, from TeliaSonera Norway Nepal Holdings AS for US$1.365 billion.

At 3.55pm, shares in Axiata traded five sen or 1.4% higher at RM3.61, valuing the company at RM32.90 billion.

The counter saw some 2.7 million shares changing hands. Year-to-date, the counter has fallen 13% from RM4.15 on Jan 2.