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VNPT and MobiFone to equitise by 2020
Two giant mobile network operators MobiFone Telecommunications Corporation (MobiFone) and Viet Nam Post and Telecommunication Group (VNPT) are aiming to conduct their equitisation in the 2016-2020 period.
This was reported by the Dau Tu (Investment) newspaper.
The two companies are included on the list of 240 State-owned enterprises undergoing reorganisation in the 2016-2020 period. Following their equitisation, the State will hold from 50 to less than 65 per cent of the companies’ charter capital.
Viet Nam’s three leading telecom companies -- VNPT, MobiFone and Military-run telecom group Viettel -- currently hold 97 per cent of Việt Nam’s telecommunications market share, with the State holding 100 per cent of their charter capital. Therefore, the companies’ implementation of privatisation to reduce the State’s ownership is inevitable, Mai Liem Truc, former director general of the General Post Office, said.
Truc said State holding of 50 to less than 65 per cent of the companies’ charter capital is considered reasonable and acceptable.
VNPT chairman Tran Manh Hung said VNPT is carefully preparing for the execution of its equitisation plan in the period 2016-2020.
MobiFone had previously operated under the ownership of VNPT, but it separated from its state-owned parent firm in 2014.
According to the Dau Tu (Investment) newspaper, VNPT recently proposed that the government allow it to secure a 20 per cent stake in MobiFone. It also asked for permission to make full use of the future amount from re-selling its stake in MobiFone once it completed the IPO.
VNPT’s main business lines involve trading in telecommunications and information technology products and services and multimedia, and consulting, designing, installing, operating and repairing IT facilities.
It also researches, develops, manufactures, trades, exports, and imports telecommunications, information and multimedia products.
MobiFone was planned to be equitised from 2014, the time it becoming independent from VNPT, however, two years later, the company’s privatisation plan has been delayed.
In early 2016, MobiFone completed the enterprise valuation process but is now facing inspection over its acquisition of An Vien Television, which is likely to affect the business value of MobiFone. It is when the final result of this acquisition is disclosed that MobiFone can implement its equitisation.
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