FPT to buy 49 percent stake in EVN
EVN Telecom will negotiate the price directly with FPT and FPT Telecom.
After
the deal is consumated, the State will continue to own a controlling
interest of 50.6 percent of EVN Telecom. EVN Telecom executives will be
able to purchase shares representing 0.4 percent of equity in the firm,
at a price equal to 60 percent of the price paid by FPT Telecom.
EVN
Telecom has a charter capital of 2.96 trillion VND (141 million USD)
and offers internet and mobile phone services. However, it has failed to
perform strongly in the nation's rather crowded telecommunications
market. Last year, it earned less than 2.9 trillion VND (137.14 million
USD), just 61 percent of its target of 4.73 trillion VND (225.23 million
USD) for the year.
"EVN Telecom needs to hasten equitisation as
the firm is facing some financial constraints," said a senior official
of the company who asked to remain anonymous. "But we haven't only
targeted investors but also strategic partners with leadership in
technology and the ability to rescue EVN Telecom with GSM technology,
the lack of which has kept the company from being a player in the
market."
EVN Telecom had earlier planned to sell at least a
20-per-cent interest to a foreign strategic partner, but
foreign-invested telecoms like Hong Kong-invested Vietnamobile, S-Fone
of the Republic, and Russian-invested Beeline have struggled to make a
dent in the market share of major domestic rivals Viettel, MobiFone and
Vinaphone. These three State-owned giants consistently dominate the
market.
"The telecom market has some unique behaviour and perhaps
only the Vietnamese understand the most effective ways to exploit it,"
said Pham Thanh Trung, an industry observer in Hanoi. "If FPT can do
anything at EVN Telecom, it will be a revolution." /.