Mobifone’s acquisition of AVG officially terminated

The acquisition deal between Mobifone and AVG was officially terminated on Monday. - Photo dantri.com.vn

HÀ NỘI — Việt Nam Mobile Telecom Services Corporation (Mobifone) and multimedia company Audio Visual Global (AVG) signed an agreement on Tuesday to officially terminate the acquisition deal between the two companies.

The move was made to comply with the order of Deputy Prime Minister Trương Hòa Bình and the Ministry of Information and Co妹妹unication after the Government Inspectorate founded that Mobifone’s acquisition of a  九 五 per cent stake in AVG broke regulations and led to a loss of around VNĐ 七 trillion (US$ 三0 四 million) in State capital.

According to the agreement, Mobifone will be refunded a total of VNĐ 八. 七 七 五 trillion, including the entire sum worth VNĐ 八. 四 四 五 trillion it had paid AVG for the  九 五 per cent stake in the struggling multimedia company and other costs.

Mobifone will return  三 四 四. 六 million shares to AVG shareholders.

The acquisition deal, conducted in late  二0 一 五 and announced in January  二0 一 六, became a criminal case after the Government Inspectorate found that Mobifone had violated regulations in the acquisition, especially in the assessment of AVG’s financial situation. This caused a loss worth an estimated VNĐ 七 trillion because AVG was in difficulty with an accumulated loss of more than VNĐ 一 trillion, and was not in as good a situation as Mobifone reported in the acquisition.

On March  一 二, the two companies agreed to cancel the deal several days before the inspection results were announced.

Mobifone said that in the future the company would focus on developing infrastructure for network expansion, restructuring its organisation and improving its business efficiency. — VNS