EVN seeks advice after FPT pullout

The Electricity of Viet Nam plans to consult the Prime Minister for suggestions regarding the withdrawal of an FPT deposit of more than VND700 billion (US$34 million) meant for repurchasing EVN Telecom shares, said Dinh Quang Tri, deputy general director of Electricity of Viet Nam.

FPT declared not to repurchase Electricity of Viet Nam’s (EVN) shares on April 15 despite its initial plans of obtaining a 60 per cent stake in EVN. Withdrawal of the deal has been attributed to a new equitisation plan approved by the Government which would allow FPT to hold only a 49 per cent stake in EVN.

New General Director of FPT Truong Dinh Anh said that new government regulations as well as contract terms were no longer suitable for purposes of a deal between FPT and EVN.

According to Anh, Government Decree No 25/2011ND-CP, aimed at guiding the implementation of the Law on Telecommunications from June 1, stipulates that an institution or individual, which holds over 20 per cent of the charter capital or shares in a telecommunications company, will not be allowed to hold over 20 per cent in another company operating in the same market.

EVN deputy general director Dinh Quang Tri said that if either side chose to break their contract, each would be compensated with the amount of deposit already in the bank’s possesion. The fate of FPT’s deposit, unilaterally withdrawn from the repurchase of EVN shares, remains unanswered. — VNS

Tags: EVN Telecom

Posted by VBN on May 24 2011. Filed under Telecommunication. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry