Vietnamese state-owned operator MobiFone has been instructed to complete a privatization and restructuring process known as equitization in 2018, while former parent VNPT has been instructed to equitize in 2019.
The Ministry of Information and Communications plans to assess and approve the restructuring plans of MobiFone as well as Vietnam Television Corporation and VNPost by the end of the month.
VNPT will meanwhile submit its own restructuring plan during the same period in advance of an equitization in 2019.
The government has revealed plans to concentrate on improving the strength of the companies rather than maximizing revenue from the privatization processes, and will decide whether to sell stakes to a few strategic investors or to many individual shareholders on a case-by-case basis.
MobiFone was separated from VNPT is 2014 as part of the latter’s restructuring plan, which also involved dividing VNPT’s operations into three subsidiaries concentrating on infrastructure, services and sales respectively.
After its separation, MobiFone commenced its equitization plan and appointed appraisers for an IPO. The company has drawn interest from a number of potential international investors, including Singtel, Telenor, Australia’s Telstra and Sweden’s Comvik.
To complete the process MobiFone will need to be reappraised – its last valuation in 2015 has expired. Previous valuations have suggested that the company could be worth over $4 billion.
