S-Fone to divert into joint venture entity

May 17, 2011 | 14:06

(0) user say

The country’s first CDMA network S-Fone is expected to receive a joint venture certificate to allow it to liquidate its contract with foreign partner South Korea SK Telecom in September.

Saigon Postel, the business cooperation contract local partner to develop the S-Fone network, said the company had completed and submitted its application to the Ho Chi Minh City Planning and Investment Department to be granted an investment certificate.

The government on August 9 last year approved the country's first CDMA network and S-Fone to divert into a joint venture entity from a business cooperation contract entity, becoming the second mobile service joint venture in Vietnam.

The Vietnamese partner, Saigon Postel, will hold an 80 per cent stake, with the remainder held by SK Telecom. The local partner, Saigon Postel, will buy back the foreign stake within two years.

Under Saigon Postel’s annual report in 2010, S-Fone had working capital of $229 million and Saigon Postel contributed VND238.1 billion ($12.9 million) to the operator.

Saigon Postel reported revenue of VND696.2 billion ($33.6 million) in 2010, a year-on-year decrease of 18 per cent. Saigon Postel is aiming to earn VND748 billion ($36.1 million) in revenue and a pre-tax profit of VND7.3 billion ($352,000) this year.

By Hai Van

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional