How many MobiFone shares can investors own?
How many MobiFone shares can investors own?
The privatization of MobiFone Telecommunications Corporation this year is extremely attractive to both domestic and foreign investors.
In late 2014, Minister of Information and Communications Nguyen Bac Son said that the Ministry would submit to the Government MobiFone’s equitization plan and this plan would be implemented in 2015.
The year 2014 marked a new development of MobiFone, with two important events: splitting from the Vietnam Post and Telecommunications Group (VNPT) to be under the direct management of the Ministry of Information and Communications and being reorganized in the form of a corporation and finalizing preparation for privatization.
The equitization of MobiFone in 2015 is a mission set the Government and Ministry of Information and Communications. MobiFone is in the group of 432 State-owned enterprises that must finish equitization in 2014-2015. In late 2014, the Office of Government asked MobiFone to announce the enterprise value and complete the equitization plan.
MobiFone’s equitization – a golden opportunity
The equitization of MobiFone in 2015 is considered a golden opportunity for enterprises at home and abroad, because MobiFone is one of the most lucrative businesses among wholly-state owned firms in Vietnam.
MobiFone has become a big rival of Viettel and VNPT. After it is upgraded into a corporation, its brand value will increase. In some countries, the value of telecom licenses can reach billions of dollars, so when MobiFone is granted more licenses, its brand value will be higher.
Many investors have expressed their interest and desire to become a strategic partner of MobiFone, such as Standard Chartered Bank, Comvik International Vietnam AB, Telenor, Vodafone, Singtel , T-Mobile, and Orange (France Telecom).
However, how many percentages of shares can investors purchase? According to Deputy Minister of Information and Communications Le Nam Thang, in principle, Vietnam has joined the WTO and participated in free trade agreements, so the equitization process must be transparent, and foreign firms can own up to 49% stake in MobiFone.
Last year, the Ho Chi Minh City Securities Company (HSC) estimated MobiFone’s value at approximately $3.4 billion MobiFone. HSC said that with the current growth rate, the value of MobiFone can be more than $4 billion after IPO (initial public offering).
According to the document on transfer of state ownership rights at MobiFone from VNPT to the Ministry of Information and Communications, signed last July, after equitization, VNPT will hold a maximum of 20% of MobiFone shares. MobiFone’s current chartered capital is VND15 trillion so the remaining shares for other investors will still be a huge number.
