Start equitization of VTVcab, SCTV

According to the Prime Minister's direction on the Project on Arrangement and Restructuring of Enterprises under Vietnam Television (VTV), VTV continues to maintain the state capital at Vietnam Satellite Digital Television Company Limited (VSTV), transfer the right to represent the owner of VTV's capital contribution at Multimedia Advertising Communication Joint Stock Company (SmartMedia) to Vietnam Cable Television Corporation Limited Company (VTVcab), and record an increase in state capital for VTVcab.

VTVcab is expected to begin equitization steps. Illustrative photo. Source: Internet

At the same time, in the first quarter of 2016, VTV equitized VTVcab; equitized Vietnam Television Telecommunication Services Company Limited (VTVbroadcom). VTV also sold part of the state capital at SaigonTourist Cable Television Company Limited (SCTV) and converted this company into a joint stock company according to current law.

VTV is also responsible for arranging the above enterprises according to current regulations; developing a roadmap for listing shares on the stock market and a roadmap for continuing to divest state capital in equitized enterprises in which the State does not hold controlling shares; continuing to represent state capital in enterprises in which VTV invests.

According to Mr. Tran Binh Minh, General Director of VTV, equitization of VTV-affiliated enterprises is one of the policies that VTV is implementing under the direction of the Government and will begin to be implemented from now until the end of 2016. The divestment and gradual withdrawal of VTV's role in pay TV enterprises is to make the enterprises operate more effectively, bringing benefits to shareholders and subscribers. After selling shares from these units, VTV will only play the role of content controller.

VTV also said that it will choose strategic partners in equitization with criteria such as: having experience operating in the field of pay TV, abundant financial resources, advanced technology and management level...

Mr. Ta Son Dong, Deputy General Director of VTVcab, said that the policy of equitization and selection of strategic partners for VTVcab has been in place for nearly 2 years. The equitization of VTVcab is receiving special attention from 4-5 foreign partners who are exploring cooperation opportunities. VTVcab is developing a plan and roadmap for equitization. Initially, 15-20% will be sold, then more will be sold, but not exceeding 49%. Since 2016, VTVcab has begun implementing equitization steps.

VTV's report shows that VTV has invested and contributed capital to establish 4 enterprises in the television sector, including: VTV holds 100% of the charter capital at Vietnam Television - Telecommunications Services Company Limited (VTV Broadcom) and VTVcab, in which VTVcab participates in contributing capital to K+ and holds 51% of the charter capital; VTV holds 50% of the charter capital of SCTV. At Multimedia Advertising and Communications Joint Stock Company (Smart Media), VTV contributes 18.07% of the charter capital.

Mr. Le Dinh Cuong, General Secretary of the Vietnam Pay Television Association (VNPayTV), commented that VTV's equitization of VTVcab and SCTV is a very encouraging sign for the Vietnamese television market. Equitization is an inevitable trend of pay television, allowing the market to regulate the business of enterprises. Enterprises with money will buy good things to broadcast, those with little money will buy average things. Consumers also have more choices in what to buy to serve their family's entertainment needs.

According to Baodautu