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5/4/2018 11:09:10 AM

Bad signal: MobiFone refunded after failed pay TV investment deal

The telecommunications giant has not repaid AVG investors.

 
MobiFone captured public attention in early 2016 by announcing it was breaking into the pay TV market through the acquisition of a 95 percent stake in AVG. Photo by VnExpress

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.

VnExpress
 
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