FPT has decided to make a VND2-trillion (US$102.6 million) bond issue, most of which will be used for buying a 50 percent stake in EVN Telecom.


The Corporation for Financing and Promoting Technology, as the company is formally known, will acquire 44 percent and its subsidiary FPT Telecom Company, 6 percent stake of EVN Telecom. However, the parties declined to reveal the price of a share or the value of the deal.
EVN Telecom, an affiliate of the Electricity of Vietnam Group, has a chartered capital of VND3 trillion ($153.9 million).
FPT has interests in a many segments of the information and communication technology market but not in mobile telephony and has chosen this route to enter the sector.
EVN Telecom is the smallest of the country’s seven telecom firms, with a market share basing of 1.1 percent in terms of subscribers, according to the Ministry of Information and Telecommunications.
It is set to make an initial public offering (IPO), the first telecom service provider to do so though details are not known yet. MobiFone, the giant state-owned provider, was to have become the first in the industry to make an IPO and even selected the consultant for it, but has remained strangely silent for the last one year.
FPT reported a profit of VND959 billion ($49.2 million) - 24 percent up year on year - on revenues of VND16.731 trillion in the first 10 months. Its EPS is VND5,011.