MobiFone refunded after failed pay TV investment deal
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The telecommunications giant has not repaid AVG investors. MobiFone has confirmed to authorities that it has been refunded in full from a private pay TV firm after the deal between these companies fell through.
The state-run telecommunications giant said that a total of VND8.9 trillion ($390 million), equivalent to a 95 percent stake in Audio Visual Global JSC. (AVG), had been returned to the company on April 26.
MobiFone has yet to return shares to AVG shareholders, and is now waiting for government inspectors to confirm the transfer before proceeding, the statement said.
In early 2016, MobiFone announced that it was breaking into the pay TV market through the acquisition of a 95 percent stake in AVG, without revealing any information about the deal.
After investigating the deal, the Government Inspectorate concluded that MobiFone’s deal to acquire AVG had violated investment laws and caused a loss of about VND7 trillion ($307 million) to the state.
Multiple ministries, including the information ministry, were also found responsible for a number of wrongdoings relating to the deal.
The canceled acquisition was brought up last week when Communist Party General Secretary Nguyen Phu Trong said at a committee meeting that the government was determined to fight corruption without exception.
Questions & Answers
Q.Has MobiFone now completed all necessary actions following the failed investment?
Has MobiFone now completed all necessary actions following the failed investment?
No, MobiFone has not yet returned shares to AVG shareholders. It is currently waiting for government inspectors to confirm the transfer before it can proceed with this final step.
Q.When was the original acquisition deal announced by MobiFone?
When was the original acquisition deal announced by MobiFone?
MobiFone originally announced its intention to break into the pay TV market through the acquisition of a 95 percent stake in AVG in early 2016. No details about the deal were revealed at that time.
Q.Which government body investigated MobiFone's acquisition of AVG?
Which government body investigated MobiFone's acquisition of AVG?
The Government Inspectorate investigated MobiFone's acquisition of AVG. They concluded that the deal had violated investment laws and resulted in a significant loss to the state.
Q.How much money was MobiFone refunded and what did it represent?
How much money was MobiFone refunded and what did it represent?
MobiFone was refunded a total of VND8.9 trillion ($390 million). This amount was equivalent to a 95 percent stake in Audio Visual Global JSC. (AVG).
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