MobiFone and AVG cancel the US$391-million share transfer contract

By Bao Binh - Mar 14, 2018 | 07:55 AM GMT+7

TheLEADEROn March 12, MobiFone Corporation (Mobifone) and Audio Visual Global JSC (AVG) signed the commitment on cancellation of the share transfer contract entered by the two firms in 2015.

MobiFone and AVG cancel the US$391-million share transfer contract
MobiFone will return AVG's shares and assets transferred. Photo: Nguyen Khanh

Accordingly, AVG's shareholders, who transferred shares to MobiFone, will refund all amount from the sale of shares already paid by MobiFone with the interest of the amount in accordance with the instructions of the competent authorities. MobiFone will also return AVG the number of shares and assets transferred.

In addition, AVG will pay the relevant fees that Mobifone paid to the parties involved in the acquisition of AVG’s shares.

Meanwhile, MobiFone and AVG will promptly review and undertake the necessary actions to avoid damages to the two firms and impacts on the resources and interests of the State.

According to AVG's representative, there are many reasons to cancel the contract. Since its acquisition, MobiFone has not operated and developed AVG as planned or MobiFone has paid only 95 per cent of the contract value since the contract came into full effect.

MobiFone's leader explained that due to AVG's current difficulties and changes in the market, MobiFone has not been able to concentrate on developing AVG. In addition, the Government's inspection on this deal has impacted the completion of payment for AVG.

On March 8, the Secretariat of the Communist Party Central Committee issued the document on handling the case of MobiFone’s acquisition of a 95 per cent stake in AVG. The Party Secretariat said this is really a serious and complicated case that required comprehensive inspection and drew public attention.

The Secretariat asked the Government and the Government Inspectorate to take responsibility for the inspection results and urgently handle the case in an objective and accurate manner in accordance with the law.