AVG shareholders to return MobiFone's $110 million

April 03, 2018 | 17:55
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The total money paid by MobiFone for the AVG acquisition will be returned within 90 days after signing the cancellation agreement.
avg shareholders to return mobifones 110 million
MobiTV is the brandname established after MobiFone acquiring AVG

In the afternoon of April 2, at the press conference of the Government Office, Deputy Minister of Information and Communications Hoang Vinh Bao revealed that AVG has paid back VND2.5 trillion ($110.1 million) to MobiFone. According to the firm’s commitment, they will return all the money paid by MobiFone, along with interest and relevant costs within 90 days after signing the cancellation arrangement.

Bao said that MobiFone used state capital to acquire 95 per cent of AVG’s shares, so MIC’s requirement to retrieve state capital is reasonable.

The inspection conclusions were adopted with the approval of the prime minister. MIC held a meeting to announce the inspectorate’s conclusions to involved individuals and organisations.

Earlier, on March 12, after a long meeting, MobiFone and AVG approved cancelling the deal and returning each other what they received under the contract. The total value of the deal was VND8.889 trillion ($392 million).

AVG’s shareholders who sold the shares will have to return the money paid by MobiFone. The shareholders will receive all the shares and assets that had been transferred to MobiFone. The two parties agreed to do their utmost to minimise the damages caused by the cancellation.

MobiFone completed the acquisition of AVG in January 2016, then renamed it to MobiTV in April. The Government Inspectorate started to inspect this project in September 2016, but its conclusion has only announced on March 14, 2018.

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