FPT to acquire 50% stake in EVN Telecom via IPO

1 Nov 2010

The Corporation for Financing and Promoting Technology (FPT) and its telecoms subsidiary FPT Telecom are set to become strategic investors in CDMA operator EVN Telecom following the launch of the latter’s initial public offering (IPO), Viet Nam News writes, citing a source from EVN. According to the report, Prime Minister Nguyen Tan Dung recently approved EVN Telecom, a subsidiary of state-owned utility Electricity of Vietnam, to select domestic strategic partners for its privatisation, which will reportedly see FPT and its telecoms arm jointly hold a 50% stake in EVN Telecom. The companies hope that the cooperation will help EVN Telecom improve its position in Vietnam’s telecoms sector, whilst opening up opportunities for FPT to enter the wireless sector. CommsUpdate reported last month that EVN Telecom plans to launch an IPO by the end of this year. As well as a stake for domestic investors, the operator also plans to sell at least 20% to foreign strategic partners. Foreign investors must have experience in the telecoms arena, including the construction of 3G networks.

Vietnam, EVN Telecom, FPT Telecom