MobiFone's equitisation to be complete by mid-2016

Tuesday, Jan 27, 2015 16:22

MobiFone's equitisation process is expected to be complete by mid-2016, said Minister of Information and Communications Nguyen Bac Son. — Photo

HA NOI (Biz Hub) — MobiFone's equitisation will be completed within 20 months, which will also include its restructuring, expected to conclude by mid-2016, the Minister of Information and Communications Nguyen Bac Son said.

The Minister provided this information on the sidelines of a conference held in Ha Noi last week to discuss the implementation of the Vietnam Posts and Telecommunications Group's 2015 plan.

The minister had recently taken a decision on the rules of the group's organisation and operations. The MobiFone Corporation is an official name used in the international markets. It is a 100 per cent state-owned enterprise, with a charter capital of VND15 trillion (US$714.2 million).

The main businesses of MobiFone include investment, construction, operating mobile networks and providing telecom services, information technology, broadcasting and multimedia. It is also allowed to produce, assemble, import and export electronics, telecom and IT equipment.

According to the decision, the company will have 21 dependent accounting economic units of a sales section, a network section and others.

The enterprise holds more than half of the charter capital of these three companies. They are MobiFone Global, MobiFone Plus and MobiFone Services. Besides, the group owns a stake in the four firms, including Technology and Media Investment-Development Joint Stock Company and the TienPhong Bank.

Deputy Minister Le Nam Thang said that after the Prime Minister approves principles on which MobiFone's equitisation will be based, the ministry will build a specific plan that includes enterprise value assessment and selection of strategic investors.

On December 1, 2014, Minister Son had signed a decision to transform MobiFone into a corporation.

MobiFone is the second largest Vietnamese mobile network operator, after Viettel. In 2014, it reported a revenue of nearly VND40 trillion ($1.9 billion) and earned a profit of more than VND7 trillion (more than $333 million). — VNS

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