VietNamNet Bridge – From May 4-16, MobiFone will sell bidding documents for its equitisation consulting bidding package. The equitisation plan of the first mobile information network of Vietnam is not only attracting the attention of investors but the whole telecom sector.

“Most of the hindrances to the equitisation process of MobiFone have been solved. We believe that the process will go according to schedule,” said MobiFone Director Le Ngoc Minh.

Mr Minh disclosed that the formalities of equitisation might be completed in 2007, and in early 2008, MobiFone would perform initial public offering (IPO).

He also said that as the equitisation of MobiFone was a sensitive task without any precedent in the telecom sector so the process must be implemented very carefully. In addition, the equitisation of a mobile network that accounts for 40% of the market like MobiFone without specific regulations or legal documents must be done even more carefully.

Regarding strategic investors and the ratio of shares issued to the public, Mr Minh said: “I cannot say anything at this moment. We have to wait till we have an equitisation consultant and the opinions of experts and leaders at all levels and then we have to base our decision on the specific situation.”

According to Thanh Nien Newspaper’s sources, of partners that can become strategic partners of MobiFone, Sweden’s Comvik group is the most feasible.

A telecom expert commented: “Some leading world telecom groups also want to buy stocks of MobiFone and their rank in the world telecom market is higher than Comvik. However, Comvik is a partner of the Vietnam Post and Telecommunications Group (VNPT), and has worked together with VNPT to build MobiFone for the past ten years.”

“In the long run, the best model would be VNPT holding one-third of the shares, one-third for strategic partners, and the last part for other shareholders,” MobiFone Director Le Ngoc Minh said.

“If equitisation is carried out fast and MobiFone can take advantage of changes in mechanisms brought by equitisation, the firm’s market share may increase to over 50%,” Mr Minh added.

Commenting about the issue that equitisation can make mechanisms change, another official of MobiFone said: “In business you can buy equipment a little bit more expensive but you still can obtain higher profit if the equipment is put into operation early rather than buying it cheaply and using it later. However, with the current mechanism, it must be done right.

“With equitisation, profit will be the target and shareholders will consider decisions based on that factor. Operators will be freer and there will be an opener mechanism in making business decisions.”

(Source: TN)