EVN Telecom poised to sell stakes to foreign partners

EVN Telecom hopes that its equitization process will be wrapped up this year. The telecommunication service provider plans to keep intact the state’s capital contribution and sell stakes to strategic investors, shareholders and its staff.

EVN Telecom plans to sell 30 percent of stakes at maximum level to outside shareholders, and plans to sell at least 20 percent of shares to foreign investors. If allowed, the corporation will sell stakes to foreign strategic shareholders at the negotiable prices. Especially, foreign investors will have to satisfy some requirements set by EVN Telecom. For example, they need to have experience in the telecommunication field and experience in 3G network development.

To date, two investment institutions from Singapore and Malaysia have expressed their wills to become strategic partners of EVN Telecom. Besides, two domestic enterprises which have financial capability and telecom business experience also plan to become EVN Telecom’s shareholders.

Local newspaper VnExpress has quoted its sources as saying that EVN Telecom has to speed up the equitisation process, because it now wants to call for more capital when facing some financial difficulties. The investors, who want to become EVN Telecom’s shareholders not only need to be strong in financial capability, but also need to be knowledgeable about technologies, which can help EVN Telecom develop.

Vo Quang Lam, Deputy Director of EVN Telecom told VnExpress newspaper that the sale of stakes to foreign investors has got the approval from the Prime Minister and that the corporation is implementing the sale plan.

Also according to Lam, EVN Telecom is going on the right track when speeding up the equitisation process.

EVN Telecom has declined to reveal the names of investors. However, Lam said that the details of the plan, including the percentages of stakes to be sold, the methods to choose investors and detailed commitments will be submitted to the Ministry of Industry and Trade for approval, while the Prime Minister will make final decision.

Meanwhile, while talking with VnExpress on the sidelines of the Government’s regular press conference, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said her ministry has not received any information about EVN’s plan to sell stakes to foreign partners.

According to a telecom expert, in such conditions, Vietnamese enterprises would be the most suitable partners for EVN Telecom.

Vietnam now has three telecom corporations which have foreign partners. Hanoi Telecom’s strategic partner is Hong Kong – Hutchison, while S-Fone is co-operating with South Korean SK Telecom, and Gtel with Russian Beeline. However, SK Telecom has nearly withdrawn capital from S-Fone, the partners in Beeline network do not share the same views, while Hanoi Telecom has not yet escaped from the difficult period.

Meanwhile, 100 percent domestic owned enterprises, such as VinaPhone, MobiFone and Viettel have been very successful on the market. Viettel is now trying to push up outward investment.

“Vietnam’s telecom market has its specific characteristics which only Vietnamese people can understand in order to make reasonable decisions. Therefore, EVN Telecom should think carefully about seeking foreign investors,” the expert said.

Meanwhile, EVN Telecom has affirmed that seeking foreign partners remains the priority plan. However, Lam said that during the negotiations, if EVN Telecom finds it better to accept domestic investors, it will report this to the Government and the Ministry of Industry and Trade.-VnExpress

Tags: EVN Telecom