MobiFone transformed into a corporation

Tuesday, Nov 18, 2014 15:39

Customers at a MobiFone transaction office. The company is transformed into a corporation. — Photo

HA NOI (Biz Hub) — Prime Minister Nguyen Tan Dung has agreed with the proposal of the Ministry of Information and Communications to transform MobiFone One Member Company Ltd into a corporation.

The ministry will be responsible for carrying out the corporation's equitisation in accordance with current regulations and with a prime ministerial approval of the restructuring plan for Vietnam Post and Telecommunications Corporation.

MobiFone was detached from the State-run Viet Nam Posts and Telecommunications Group (VNPT) and placed under the MIC management last July following a prime ministerial decision to restructure the VNPT. The company has a charter capital of VND12.6 trillion (US$600 million).

The HCM City Securities Company then valued MobiFone at about $3.4 billion and projected this to rise to more than $4 billion if the operator's revenues and profits continued to increase after the separation.

MobiFone is one of a few enterprises that have generated the largest corporate tax revenues in Viet Nam for many years and has achieved about 80 per cent of its annual business targets in the first nine months of 2014. — VNS

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