S-Fone to divert into joint venture entity

The country’s first CDMA network S-Fone is expected to receive a joint venture certificate to allow it to liquidate its contract with foreign partner South Korea SK Telecom in September

Saigon Postel, the business cooperation contract local partner to develop the S-Fone network, said the company had completed and submitted its application to the HCM City Planning and Investment Department to be granted an investment certificate.

The government on August 9 last year approved the country’s first CDMA network and S-Fone to divert into a joint venture entity from a business cooperation contract entity, becoming the second mobile service joint venture in Vietnam.

The Vietnamese partner, Saigon Postel, will hold an 80 percent stake, with the remainder held by SK Telecom. The local partner, Saigon Postel, will buy back the foreign stake within two years.

Under Saigon Postel’s annual report in 2010, S-Fone had working capital of $229 million and Saigon Postel contributed 238.1 billion dong ($12.9 million) to the operator.

Saigon Postel reported revenue of 696.2 billion dong ($33.6 million) in 2010, a year-on-year decrease of 18 percent. Saigon Postel is aiming to earn 748 billion dong ($36.1 million) in revenue and a pre-tax profit of 7.3 billion dong ($352,000) this year.

 

Category: Business