VNPT mulls plans to divest stake in Vinaphone or MobiFone

6 Jun 2011

Vietnam’s state-owned national telecoms operator Vietnam Posts and Telecommunications Group (VNPT) has submitted to the government a plan to offload its shares in one of its two wholly owned mobile network operators, Vinaphone or MobiFone, Thanh Nien reports, citing local news website VnExpress. The move follows the implementation of a new government guideline, Decree No. 25/2011/ND-CP, on 1 June 2011 which states that an institution or individual that owns more than 20% of the charter capital or stake in one telecoms operator, may not hold more than 20% of another firm operating in the same market. Currently, VNPT owns 100% equity of MobiFone and Vinaphone, the country’s second and third largest wireless operators by subscribers, respectively. The state-owned company will therefore be forced to sell the majority of its shares in one cellco, or could opt to merge the two network operators into one company, or sell shares in the group as a whole. According to the report, VNPT has not yet made its final decision and is awaiting instructions from the authorities.

Vietnam, MobiFone Telecommunications Corporation, Vinaphone, VNPT-Vinaphone