SK Telecom to quit S-Fone in next few years

S-Fone’s local operator, Saigon Postel is rushing to find potential partners to joint its new joint venture following the planned withdrawal of the existing partner South Korea’s SK Telecom.

The Vietnamese government on August 9 approved for the country’s first CDMA network, S-Fone operator to divert into a joint venture from business cooperation contract entity, making it become the second mobile service joint venture in Vietnam.

The venture’s local partner, Saigon Postel Corporation, holds 80 per cent of the stake, and the remaining held by South Korea’s SK Telecom during the first two year of the joint venture’s establishment.

Saigon Postel announced that it would buy into the foreign stake within the next two years and then would sell between 20 and 30 per cent of its stake to new partners.

Ho Hong Son, general director of Saigon Postel, said the firm was seeking potential partners for the new joint venture.

“We are welcome all partners who are interested in investment in Saigon Postel in general and S-Fone in particular,” said Son.

Launched in 2003, the business cooperation contract of Saigon Postel and SK Telecom, due to expire in 2016, had initial investment capital of $230 million including $218 million from SK Telecom. A total of $180 million was disbursed so far. S-Fone reportedly signed in 7 million mobile subscribers after seven years in operation.- VIR

Tags: SK Telecom