Mobilefone privatization unlikely to finish this year: VNPT official

It is unlikely to finish MobileFone privatization this year amid the downtrend of local stock market and current macro conditions

It is unlikely to finish MobileFone privatization this year amid the downtrend of local stock market and current macro conditions, an unnamed representative from Vietnam Post and Telecommunication Group (VNPT) told local online newspaper Dau Tu Chung Khoan.

The representative said the government set the following requirements for state-owned enterprises to be equitized: avoiding losses of state assets, bringing a fair capital surplus for the state, ensuring more transparent and effective operation after privatization, ect…

Amid the current macro conditions, the down trend of stock market, and the outlook to the end of the year, it is difficult to IPO MobiFone this year and meet the government requirements, especially in evaluating the company’s assets and setting IPO price.

MobiFone has been running profitably throughout its life therefore its shares cannot be low, selling MobiFone’s shares at low prices will cause losses of state assets and damage the company’s image after privatization. However, it is difficult to sell MobiFone’s shares at “fair” valuation in the IPO amid the current downtrend of stock market.

The VNPT is in the middle process of structuring MobiFone including: stake ratios after privatization, criteria for strategic partners. VNPT will deploy MobiFone’s equitization plan right after getting instructions from the government and the Ministry of Information and Communication.

VNPT also said it will not forced to privatize VinaPhone or merge VinaPhone and MobiFone into one company as VinaPhone is independent record unit of VNPT without chartered capital. – Stoxplus.com

Tags: Mobilefone, Mobilefone privatization