Telecom giants VNPT, MobiFone to equitise
Two giants mobile network operators MobiFone Telecommunications Corporation (MobiFone) and Vietnam Post and Telecommunications Group (VNPT) are aiming to conduct their equitisation in the 2016-2020 period.
The two companies are included on the list of 240 State-owned enterprises undergoing re-organisation in the 2016-2020 period. Following their equitisation, the State will hold from 50% to less than 65% of the companies’ chartered capital.
Vietnam’s three leading telecom companies, VNPT, MobiFone and Military-run telecom Group (Viettel) currently hold 97% of the domestic market share, with the State holding 100% of their chartered capital.
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Therefore, the companies’ implementation of equitisation to reduce the State’s ownership is inevitable, said Mai Liem Truc, former General Director of the General Post Office.
Truc said the State holding of 50% to less than 65% of the companies’ chartered capital is considered reasonable and acceptable.
VNPT Chairman Tran Manh Hung said the group is carefully preparing for the execution of its equitisation plan in the 2016-2020 period.
MobiFone was planned to be equitised from 2014, the time it becoming independent from VNPT, however, two years later, the company’s equitisation 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 cam implement its equitisation.
