FPT to buy over 50pct stake of EVN Telecom

The prime minister Nguyen Tan Dung recently approved in principle for EVN Telecom to select domestic strategic investors for its initial public offering (IPO), according to EVN Telecom.

Accordingly, FPT JSC and FPT Telecom Co (a subsidiary of FPT) will be strategic investors of EVN Telecom. These two firms will jointly hold 50 percent stake of EVN Telecom after IPO.

Reportedly, EVN Telecom’s chartered capital at the time of being established was three trillion dong.

Previously, according to reporter of Dau Tu (Investment) newspaper, FPT planned to invest 400 billion dong in EVN Telecom. However, Phan Duc Trung, FPT’s deputy general director said this figure is too small, his firm plans to invest

Trung also confirmed that FPT now lacks nothing but the mobile telecommunications service and intends to join mobile sector via signing agreements with licensed network providers.

It is expected that the cooperation between EVN Telecom and FPT will help EVN Telecom improve its position in the ranking board of Vietnam’s telecommunication companies. According to the statistic from Ministry of Information and Telecommunications, EVN Telecom is ranking at the seventh position amongst seven telecommunications firms with market share basing on number of subscribers of 1.1 percent.

Thus, EVN Telecom will be the first network provider to make IPO while MobiFone, the network provider was considered pilot IPO model in mobile telecommunications sector, is still mute in despite of the firm already selected strategic consultant. – Dautu

Tags: EVN Telecom, FPT