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FPT gets deposit after acquisition fails

Update: January, 16/2012 - 09:49

HA NOI — The FPT Joint stock Co last December took back a deposit worth VND708 billion (US$33.7 million) from the EVN Telecom Company after plans by FTP to acquire EVN fell through.

Concerns had been raised over difficulties in getting EVN to give back the deposit, which it had held for eight months, but these worries prove groundless.

FPT failed to acquire a 60 per cent stake of the EVN Telecom last year when Viettel officially bought the telecommunications firm.

The deposit will not impact FPT's financial balance because it was returned the same financial year of 2011. The deposit has helped FPT have VND3.5 trillion ($166.7 million) in total cash now, according to a report of the HCM City Securities Joint stock Co (HSC).

Also according to HSC's report, FPT is finalising its procedures to buy a wide-brand company of Cambodia. The acquisition's value is less than $1 million and it is expected to bring a total revenue of $4 million for FPT this year.

The Cambodian internet market still rather small; the acquisition is regarded as trial step for FPT to expand its business abroad. HSC suggested that FPT expand the telecommunication overseas via a merge and acquisition for further growth.

FPT reached a VND2.57 trillion before-tax profit last year, up 27 per cent from a year earlier. The high profit was the result of goods sales of Nokia when FPT officially became Nokia's sole distributor in the northern area; rising orders for software from Japan and its on-line services on advertisement and games; and education. — VNS

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