Vietnam’s FPT Approved to Buy 49% Stake in EVN Telecom

Vietnam’s Prime Minister Nguyen Tan Dung approved FPT Corp.’s purchase of a 49 percent stake in EVN Telecom Co. as part of a plan to privatize the state-owned phone operator.

The state will hold 50.6 percent of EVN Telecom, owned by Electricity of Vietnam, the government said in a directive dated yesterday. A stake of 0.4 percent will be sold to EVN Telecom’s employees, the government said. The company’s registered capital is valued at about 2.96 trillion dong ($152 million), according to the directive.

Vietnam is accelerating plans to privatize state-owned companies after delaying stake sales for two years during the global financial crisis. The government has laid down a policy to speed up the privatization process, Pham Viet Muon, vice chairman of the Government Office, which oversees implementation of state plans, said on Jan. 25.

Hanoi-based FPT Corp., Vietnam’s biggest listed telecommunications and software company, rose 4.8 percent to 65,000 dong as of the 11 a.m. local-time close of the Ho Chi Minh Stock Exchange. FPT was the third most active stock by value on the exchange today.

To contact the Bloomberg News staff on this story: Diep Ngoc Pham in Hanoi at dpham5@bloomberg.net

To contact the editor responsible for this story: K. Oanh Ha in Hanoi at oha3@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.