AVG shareholders return $375 million to MobiFone

MobiFone has asked for the state's assistance with procedures to return the AVG shares

Vietnam Mobile Telecom Services One Member Limited Liability Company (MobiFone) has just submitted document to the Ministry of Information and Communications (MIC) reporting the return of the money that MobiFone had spent on acquiring 95 per cent of Audio Visual Global (AVG)’s shares, according to the local media.

AVG also confirmed this information and claimed that the total amount included the service costs MobiFone had to pay for banks.

In the document submitted to MIC, MobiFone noted that its account at VietinBank has more than VND4.533 trillion ($200 million) and that its account at BIDV has received more than VND3.971 trillion ($175 million). AVG shareholders have returned a total of nearly VND8.505 trillion ($375 million) to MobiFone in five payments between March 15 and April 26.

This includes the amount that MobiFone paid for AVG shareholders to purchase 95 per cent of the shares (over VND8.445 trillion, equivalent to $372 million) and more than VND59.7 billion ($2.63 million) as part of relevant costs and interest.

However, AVG’s shares have not been returned yet. MobiFone explained that they need directions from the state agency to complete the relevant procedures. The two sides have signed the agreement on the implementation of the intermediary payment with BIDV’s Quang Trung branch.

Thus, MobiFone asked MIC’s assistance with the next steps and the Government Inspectorate to indentify the specific amount that AVG shareholders need to transfer.

Earlier, MIC reported to the Party Secretariat, the government, and the Government Inspectorate on cancelling the notorious acquisition deal two years after the transaction.

On April 27, the Central Steering Committee for Anti-Corruption decided to transfer this case under its supervision, following the country’s initiative to combat corruption. The committee has initiated investigations in 13 other cases, including the on-going BSR, PetroVietnam, and Oceanbank trials.