MobiFone plans to acquire 95 percent stake in pay TV operator AVG. Photo credit: Zing.vn
State-run MobiFone, now Vietnam's third largest telecom company, is set to break into pay TV market with the upcoming acquisition of a 95 percent stake in a private operator, local media reported on Wednesday.
MobiFone has just completed negotiations on the deal with Audio Visual Global JSC, better known as AVG, news website Zing.vn quoted an unnamed source as saying.
The move will help MobiFone compete against another two giants Viettel and VNPT, both already present in the pay TV market, it said, citing analysts.
For AVG, which entered pay TV market at the end of 2011, the share sale will help it solve financial difficulties. At the end of 2014, it had a 6.4 percent market share.
The report came about one week after Le Nam Tra, chairman of MobiFone, told a meeting with the Ministry of Information and Communication that mobile, multimedia, retail and television services will play an important role in its development plan.
The company opened the first retail store selling phones and other tech devices in October, and planned to open about 100 stores around the country within a year.
Severing ties with state-run VNPT in 2014 and now operating under the Ministry of Information and Communications, MobiFone posted a revenue of around VND36.9 trillion ($1.62 billion) in 2015, up 8.29 percent year-on-year.