Vietnam is expected to earn some $890 million from privatizing MobiFone. (Photo: VnEconomy)
The Vietnamese government could book proceeds of some 20 trillion dong ($889 million) from selling shares in state-owned MobiFone Telecommunication Corp (MobiFone), the second-biggest mobile network operator in the country after military-run Viettel Group, Minister of Information and Communication Nguyen Bac Son said.
This sum is far above the proceeds of 15 trillion dong ($667 million) that the government has booked from divesting state holdings in 558 companies in the 2011-2015 period, Minister Son stated at a government gathering late on Monday.
The minister added that the privatization of MobiFone will be carried out in a prudent way to ensure the maximum benefit as it is a profitable enterprise.
MobiFone is expected to generate revenue of 38 trillion dong ($1.69 billion) this year, earn a profit of 7.3 trillion dong ($324.5 million) and pay taxes worth 6.9 trillion dong ($306.7 million). Its return on equity (ROE) is calculated at 49.35%.
In an earlier MobiFone conference, Minister Son tipped that the firm has finished the corporate valuation process and its equitization plan will be submitted to Prime Minister Nguyen Tan Dung for consideration in the coming days.
He, however, did not specify the amount of shares of MobiFone that the government will sell.
MobiFone was established in 2014, with a registered capital of 15 trillion dong ($667 million) on the back of a split from the Vietnam Posts and Telecommunications Group (VNPT).
The firm’s brand was valued at $306 million, ranking fourth among the 50 most valuable brands in Vietnam, according to the UK’s Brand Finance.
Ho Chi Minh City Securities Corp (HSC), among the largest brokerage house in the country, gave MobiFone a price tag of $3.4 billion. The value of this firm can reach more than $4 billion after its initial public offering.