VietNamNet Bridge – The plan to equitize Vietnam Mobile Telecom Service Company, the operator of MobiFone network, will proceed after a long pause, said Deputy Minister of Information and Communications Le Nam Thang.
The equitization project won approval from the Government but then it stalled due to difficulties of the stock market. Given the restructuring plan suggested by Vietnam Posts and Telecommunications Group (VNPT), it wishes to merge the mobile networks VinaPhone and MobiFone, which belong to member enterprises of VNPT.
The information has raised a few eyebrows among many organizations and individuals who want to buy into MobiFone.
Thang said the Prime Minister has ordered that both VinaPhone and MobiFone brands must be maintained during the VNPT restructuring process but MobiFone will have to go public. VNPT will have to set up a plan to equitize MobiFone and divest capital out of the enterprise.
According to the Law on Telecommunications and Government Decree 25/2011/ND-CP, VNPT’s cross ownership in MobiFone is limited at 20% to avoid unhealthy
competition among businesses. However, affiliates of VNPT which are financially independent will be allowed to buy shares of MobiFone.
Nguyen Bac Son, Minister of Information and Communications, at a recent meeting said that the VNPT restructuring plan would be submitted to the Government, securing a strong development for both enterprises separately and those still belonging to the group.
In addition, the project aims to maintain three to four telecom networks on the local market. The networks will meet international standards and help ensure healthy development of the market.
Nguyen Thanh Chung, director of A Au Securities Company, said that MobiFone equitization will give a strong boost to the local stock market.
In comparison with share prices of some State-owned groups, long-term investors can buy MobiFone shares at VND40,000-50,000 each, Chung said.
Source: SGT