Viettel Global, the international investment unit of Vietnam’s military-run telecommunications group Viettel, is planning a VND10 trillion ($465.12 million) increase in its charter capital, to facilitate future investment in new foreign markets.
The company’s current registered capital is nearly VND12.44 trillion ($578.6 million), with the Viettel holding 97.58 per cent stake.
The company aims to scale up to reach 350 million people (an expansion by 226 million people) across the globe within three years and plans to fund this move by issuing one billion additional shares to its strategic shareholder Viettel, it said in a recent filing.
By 2017, Viettel Global hopes to double its targeted foreign markets to 16, which will create a requirement of VND47.46 trillion ($2.2 billion) in funding.
In late 2014, Viettel Global established a $1.8 billion joint venture in Myanmar. Then in March, Metfone, Viettel’s operational brand in Cambodia, announced that it was taking over Beeline Cambodia in a value-undisclosed deal.
On Monday, Viettel Global published on its website that Metfone has officially gained the assets and telecommunications license of Sotelco Ltd, the operator of Beeline Cambodia, on April 8.
Also read: Viettel Global to invest $800m in Myanmar
This has made Viettel the first Vietnamese company to acquire a foreign telecom operator. “Our investment in Beeline Cambodia is consistent with the group’s goal to become one of the world’s leading network operators by 2020,” said Viettel Global CEO Tao Duc Thang.
According to him, the company should have footholds in 20 different countries in the next five years.
Viettel, the parent group, is already present in 10 countries in Asia, Africa and Latin America. In 2014, its foreign subscribers hit 75 million people, contributing a revenue of $9.8 billion and profit of $2 billion.
Mobile industry data provider GSMA‘s Wireless Intelligence report evaluates Viettel as one of the world’s 15 leading companies in cellular connection.
Meanwhile, Viettel Global earned a profit before tax of VND3 trillion ($139.5 million) last year, a rise of 43 per cent year-on-year.