Minister of Information and Communications reveals more on mobile phone provider's equitization.
The Ministry of Information and Communications (MIC) will complete the equitization of MobiFone before the expected time of July 2016, Minister Nguyen Bac Son said on the sidelines of a VNPT conference on January 15.
The equitization will be finished within 20 months from when the National Steering Committee on MobiFone’s equitization was established in October 2014, he added.
MobiFone is arranging its human resources and reorganizing its structure, which began when the Prime Minister approved the establishment of the MobiFone Group.
“The National Steering Committee has met and reported to the Prime Minister to seek guidelines,” Minister Son said. After the Prime Minister gives the go-ahead, MIC will prepare a plan, find equitization consultants, and conduct an enterprise valuation. Consultant selection will be conducted at the same as restructuring, with the equitization process then going ahead, he explained.
In 2014 MobiFone’s annual revenue was about $1.87 billion and profit was over $328 million. The separation of MobiFone from VNPT triggered a dramatic reduction in VNPT’s revenue target for 2015.
If MobiFone had not separated from VNPT its business would be rather limited, said Deputy Minister of Information and Communications Le Nam Thang. After separating, MobiFone was issued more licenses to improve its competitiveness.
MobiFone now is a one member limited liability company, with the State holding 100 per cent of its charter capital and operates as a parent - subsidiary company. Its charter capital stands at over $703 million.