Davis Polk is advising TeliaSonera AB on the sale of its 60.4% ownership interest in the Nepalese cell phone operator Ncell to Axiata Group Berhad for $1.03 billion on a cash free and debt free basis. TeliaSonera will also dispose of its economic interest in a 20% local ownership interest in Ncell for a consideration of $48 million. The two dispositions are cross-conditional. The transaction, which is expected to close in the first half of 2016, is subject to approval by Axiata’s shareholders, regulatory approvals and other closing conditions.

TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emergent markets of Eurasia, including Russia and Turkey, and Spain. TeliaSonera is also a leading wholesale provider, owning and operating one of the world’s most extensive fiber backbones. In 2014, the Stockholm, Sweden-based group had net sales of SEK 101.1 billion ($11.8 billion). TeliaSonera is listed on Nasdaq Stockholm and Nasdaq Helsinki.

Ncell is a leading mobile telecommunication provider in Nepal. As of July 2015, it had 13 million mobile subscribers, representing a mobile subscriber market share of 48.8%.

Headquartered in Kuala Lumpur, Malaysia, Axiata operates telecommunications assets in Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, India, Singapore and Pakistan and has more than 260 million customers. Axiata is listed on the Bursa Malaysia.

The Davis Polk team included partner Jeffrey R. O’Brien, associates Leo Borchardt, Simon Evers, Christian Lang and Kennard L. Noyes and registered foreign lawyer Angela Li. Partner Jonathan Cooklin and associate Dominic Foulkes provided tax advice. The members of the Davis Polk team are based in the London, New York and Hong Kong offices.

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