Vietnam government has decided to pare its 47.8 per cent stake in one of the country’s largest pay-TV players, VTVcab, a unit of state-owned broadcasting agency Vietnam Television (VTV), in its initial public offering (IPO) slated for April 17.
According to an announcement from Hanoi Stock Exchange, the government will offload 42.29 million shares in the auction. At a starting price of VND140,900 ($6.23) per share, valuating the company at VND12.4 trillion ($544.3 million), the government aims to raise at least VND6 trillion ($240 million) from the IPO.
Under the privatization plan, VTVcab has a charter capital of VND884 billion ($38.8 million). After the IPO, the state ownership at the firm will reduce to 52.2 per cent.
Since 2015, VTV has proposed to divest its interest in three pay TV units, VTVcab, SCTV and K+. The divestment aims at enhancing the efficiency of the pay-TV units and bringing more benefit to shareholders.
However, the privatization process got delayed due to difficulties in asset valuation. Recently, the Prime Minister has agreed to extend the deadline for the VTVcab’s IPO to June 30, 2018.
VTVcab, wholly-owned by the leading state-owned broadcasting agency in Vietnam VTV, has become one of the country’s largest pay-TV players in terms of subscribers and the service range across 60 cities and provinces.
Launched in 2012, it is broadcasting 200 channels in cooperation with other television service providers. VTVcab is also in the digital, customized and Internet TV services play.
Meanwhile, SCTV, a wholly state-owned joint venture between VTV and Saigon Tourist Corporation, is also under the government’s divestment capital plan. Accordingly, VTV and Saigon Tourist Corporation will sell 12.5 per cent each in SCTV, reducing state ownership at the firm to 75 per cent.
Established in 1992, SCTV was the first cable TV operator in Vietnam to get approval to deploy telecommunications network infrastructure.