MobiFone Spends $400 Million to Acquire Loss-making AVG

Tuan Minh

08:41 14/11/2016

BizLIVE - MobiFone acquired a 95% stake of loss-making subscription-based television service provider AVG for nearly $400 million.

MobiFone Spends $400 Million to Acquire Loss-making AVG

MobiFone acquired a 95% stake of AVG for nearly $400 million.

State-owned mobile network operator MobiFone spent 8.89 trillion dong ($398 million) to acquire a 95% stake of Audio Visual Global Company (AVG) at the end of 2015, the former said in its 2015 financial statement.
According to the Ministry of Planning and Investment’s Business Registration Department, AVG has a registered capital of 3.63 trillion dong ($162.6 million). This means that MobiFone paid 2.58-fold the par value of AVG’s shares.
The Government Inspectorate in early September launched a comprehensive inspection into the acquisition that will last 50 days. It is unknown when the results will be announced.
As of June 30, 2016, MobiFone, officially known as MobiFone Telecommunications Corporation (MobiFone), had three other subsidiaries namely Mobifone Service, Mobifone Plus and Mobifone Global.
At the end of 2015, the network carrier held a 5.81% stake in SeABank and 2.25% in Tien Phong Bank, both based in Hanoi.
According to the firm’s financial statement, MobiFone had total assets of 23.2 trillion dong ($1.04 billion) as of June 2016, down 5.42% from December 2015.
Its equity gained 5.2% to 16.16 trillion dong ($723.7 million). Its cash and cash equivalent shrank 62.7% from end-2015 to $53.11 million as of June 2016.