Buyers in Singapore and Malaysia are reportedly lining up to bid for 30% of Vietnam’s state-run mobile operator, EVN Telecom
EVN is owned by the Electricity Telecommunication Company, a subsidiary of government power utility, Electricity of Vietnam…
Buyers in Singapore and Malaysia are reportedly lining up to bid for 30% of Vietnam’s state-run mobile operator, EVN Telecom
EVN is owned by the Electricity Telecommunication Company, a subsidiary of government power utility, Electricity of Vietnam (EVN).
Vo Quang Lam, Deputy Director of EVN told local newspaper, Vietnam Bridge, that he is finalising details of the privatization, which involves selling part of the company to strategic and foreign investors as well as staff.
According to the interview, foreign investors must meet EVN Telecom’s conditions of experience in the telecoms arena, including the construction of 3G networks. The report adds that two unnamed investors from Singapore and Malaysia have offered to become EVN Telecom’s strategic partner.
Speculation in a number of other news sources claims that Singapore Telecom, Axiata or Maxis have thrown their hats into the ring.
If EVN completes the process in September as planned, it will become the country’s first privatised telecoms company; cellcos Viettel and MobiFone were approved for privatisation as far back as 2005, but they have not yet completed the process. Instead, the companies have become ‘one-member limited liability companies’ under the new Business Law, which came into force on 1 July 2010. The law dictates that state enterprises that have not yet issued shares must transform into one-member limited liability companies until privatisation takes place.
Lam refused to unveil the value of the stake, but said that EVN Telecom has been valued at more than US$500m.
The government will retain a 51% stake in the company and the remaining 19% will likely be sold in by IPO or to domestic strategic partners.
A source from within EVN Telecom, who preferred to remain anonymous, told Vietnam Bridge that Singapore Telecommunications was not one of the bidders.
