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VietNamNews

Inspectorate to investigate MobiFone stake purchase in AVG

Update: August, 02/2016 - 15:00
MobiFone stake purchase in AVG, newly named as MobiTV, will be investigated by the Government Inspectorate. — Photo baomoi.com
Viet Nam News

HÀ NỘI — Việt Nam’s government inspectorate will conduct a comprehensive inspection of MobiFone Telecommunications Corporation’s business transaction in which it acquired a 95 per cent stake in Audio Visual Global JSC (AVG).

Under Directive No. 1344/TTg-V.I issued by the government office on July 22, Prime Minister Nguyễn Xuân Phúc asked the inspectors to inspect the deal in co-ordination with relevant agencies.

If violations are found, the case will be transferred to an investigation agency and the firm will be strictly punished in accordance with the country’s laws.

Early this year, MobiFone, the second largest mobile network operator in Viet Nam, said its investment in digital television was part of its 2016-2020 business strategy to meet the increasing demands of customers.

Other key areas in which the firm will invest in 2016 are mobile, retail sales and multimedia.

MobiFone did not disclose the value of the deal as well as the volume of the stake it has bought in AVG.

The name of AVG was changed to MobiTV on April 26.

MobiTV expects to add one million new subscribers of television services in 2016, and to become one of the three largest pay-TV service providers in the country.

MobiFone aims to earn VNĐ35.8 trillion (US$1.59 billion) in revenue in 2016, 10 per cent higher year-on-year, and a profit of VNĐ5.2 trillion.

AVG entered the pay-TV market in 2011, and offers both terrestrial television and satellite digital television services. It has eight channels and more than 700,000 subscribers.

Statistics from the information and communications ministry show that the pay-TV market has reached 9.9 million subscribers. — VNS

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