The Vietnamese government has approved technology company FTP’s acquisition of a 49% stake in state-run mobile operator EVN Telecom, according to reports citing a government statement.
EVN is owned by the Electricity Telecommunication Company, a…
The Vietnamese government has approved technology company FTP’s acquisition of a 49% stake in state-run mobile operator EVN Telecom, according to reports citing a government statement.
EVN is owned by the Electricity Telecommunication Company, a subsidiary of government power utility Electricity of Vietnam (EVN). This sale to FPT, and its subsidiary FPT Telecom, is part of a plan to privatise the cellco.
Similar privatisations of MobiFone and Viettel, two large telcos in the country, are reportedly on the backburner.
The state will reportedly retain a 50.6% interest in EVN Telecom, while a 0.4% stake will be sold to EVN Telecom’s employees.
According to Bloomberg, the company’s registered capital is valued at VND2.96 trillion (US$152m) but the value of the stake was not disclosed.
With seven players, the Vietnamese mobile market is highly fragmented and needs consolidation. It is hoped that privatisation plans will fuel more mergers looking ahead.
EVN did not return emails before the press deadline.
