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Mobifone given $3.4b price tag

Update: June, 17/2014 - 09:43
Customers are served at a branch of MobiFone. The network provider has been valued at $3.4 billion by HCM Securities Corporation. — VNA/VNS Photo Hoang Lam

HCM CITY (VNS) — The HCM Securities Corporation (HSC) has valued Mobifone at about US$3.4 billion.

The corporation has projected that Mobifone may reach to over $4 billion of its revenue, and profit continues to be on the rise after equitisation. HSC made its assessment in a recent market report.

Mobifone, operated by the Viet Nam Mobile Services, was officially detached from the Viet Nam Posts and Telecommunications Group (VNPT) and is under the management of the Ministry of Information and Communications (MIC) from June 10.

HSC stated that Mobifone separating from VNPT without bringing any member company or asset losses will accelerate the company's equitisation process. The corporation has predicted that the mobile provider will complete its initial public offering issuance during the period 2016 – 17.

In January 2009, Mobifone's equitisation consultant Credit Suisse had determined the corporation's value at $2 billion. However, HSC has noted that the valuation had not been appropriate.

Mobifone has been the first telecom company operating in Viet Nam since 1993. According to the MIC's 2013 ICT White Book, Mobifone was the second largest mobile network operator, with 21.4 per cent, second only to Viettel (40.5 per cent). Last year, Mobifone had gained a revenue of VND41 trillion ($1.95 billion) and a profit of over VND6 trillion ($285.7 million).

News website ttvn.vn reported that the capitalisation of $3.4 billion for Mobifone was the same as Masan Group's value and was a little higher than the value of Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank). — VNS


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