FPT pulls out of EVN Telecom deal

7 Apr 2011

The Corporation for Financing and Promoting Technology (FPT) has decided to cancel its acquisition of a 49% stake in EVN Telecom, Vietnam Investment Review reports. FPT has cited surging bank interest rates and rising investment costs of EVN Telecom’s 3G network development project as reasons for its withdrawal from the deal, due to the Vietnamese dong’s depreciation against the US dollar. Meanwhile, the report adds that Vietnam Multimedia Corporation (VTC) has expressed an interest in acquiring a 13% stake in EVN Telecom. As previously reported by CommsUpdate, Vietnam’s prime minister, Nguyen Tan Dung, approved FPT’s purchase of a 49% stake in EVN Telecom in January 2011, as part of a plan to privatise the state-owned operator. Under the plan, the state would have retained a 50.6% stake in CDMA operator EVN Telecom, a subsidiary of utility firm Electricity of Vietnam, while a 0.4% stake would have been sold to EVN Telecom’s employees. Following approval of the deal, EVN Telecom began negotiating the price directly with FPT and its telecoms subsidiary FPT Telecom, which provides fixed telephony and internet services in the country.

Vietnam, EVN Telecom, FPT Telecom, Vietnam Multimedia Corporation (VTC)