As a late comer, AVG covers mostly rural areas in Vietnam. Photo: anvientv24h.com
The Vietnamese Government Inspectorate will carry out a comprehensive investigation into the buyout of Audio Visual Global Company (AVG
), the provider of subscription-based television service in Vietnam, by MobiFone
Telecommunications Corporation (MobiFone).
In January this year, MobiFone, the second-largest mobile network operator in the country, announced the acquisition of 95% stake in AVG, without specifying the deal value.
The deal is part of MobiFone’s plan to have one million new TV pay subscribers this year and enter the top three largest pay television providers in Vietnam by 2020.
AVG was established in 2008 with a registered capital of 1.8 trillion dong ($80.6 billion) and joined the TV pay market in 2011.
As of the end of 2014, AVG had some 450,000 subscribers, accounting for a 6.4% share of the local TV pay market, according to data of the Ministry of Information and Telecommunications.
After years of reporting losses, AVG made a turnaround by making a profit in the first six months of this year, MobiFone Chairman Le Nam Tra was quoted by local media as saying.
The inspection of the MobiFone-AVG deal could put a brake on the privatization process of MobiFone, which is set to launch an initial public offering (IPO) this year after many delays.