Norway’s Telenor and Sweden’s Comvik International have reportedly confirmed their interest in becoming strategic investors in Vietnamese mobile operator Mobifone, which is tabled for privatisation.
Telenor SVP for group strategy and portfolio…
Norway’s Telenor and Sweden’s Comvik International have reportedly confirmed their interest in becoming strategic investors in Vietnamese mobile operator Mobifone, which is tabled for privatisation.
Telenor SVP for group strategy and portfolio development, Arne Kjetil Lian, told officials at Vietnam’s ministry of information and communication (MoIC) that his company wants to take a controlling stake in Mobifone and introduce its own services in the local market, the Vietnam Investment Review reported.
M A Zaman, CEO of Comvik International Vietnam, also reportedly told the ministry his company would like to invest in the Hanoi-based mobile operator, noting that it supported the company for several years.
Mobifone’s privatisation has long been in the pipeline. This April, its former state-owned parent, Vietnam Posts and Telecommunications Group (VNPT), reportedly received approval to spin it off while holding on to its other mobile unit Vinaphone.
The MoIC took control of Mobifone in June and the operator must submit an IPO plan by the end of the year, according to today’s report.
Telenor and Comvik along with Vodafone, Orange and SingTel have all opened representative offices in Vietnam to buy shares once they are released by the government, earlier local reports stated.
Mobifone general director, Le Nam Tra, declined to comment on which investors the company may be favouring as talks are ongoing but described its previous cooperation with Comvik as “a valuable experience”, according to the Vietnam Investment Review.
Ho Chi Minh City Securities reportedly recently valued Mobifone at US$3.4bn.
In Vietnam’s mobile market Mobifone and Vinaphone trail Viettel, owned by the country’s defence ministry. Together the three operators have a 90% market share. Overall, the country has six wireless players.
Telenor declined to comment, while Comvik, Mobifone and the MoIC were not immediately available.
