Alfa Wants to Take Part in Sale of Vietnam's Cell Cos

MOSCOW, Nov 23 (Prime-Tass) -- The Vietnamese government plans to sell stakes in three mobile operators and Russian financial and industrial holding Alfa Group plans to participate in the privatization, Alfa Bank President Pyotr Aven said, Vedomosti business daily reported Thursday.

A source in the Russian president's administration said that the sale of Vietnamese mobile companies to Russian investors had been discussed during the recent visit of President Vladimir Putin to Vietnam. Russian businessmen who want to take part in the mobile companies' privatization received support on the highest level, the source said without naming the businessmen.

In mid-2005, Putin also supported Alfa Group in the purchase of a 13.22% stake in Turkey's largest mobile operator, Turkcell.

Altimo, the telecommunications arm of Alfa Group, recently opened a representative office in Vietnam.

At the moment the Vietnamese mobile market is split between three GSM mobile operators, Vinaphone, MobiFone and Viettel, and one CDMA operator, S-Fone, Kommersant daily reported earlier this month.

Vinaphone and MobiFone are owned by the government and Viettel is owned by Vietnam Military Electronics and Telecommunications Co. S-Fone is owned by South Korean consortium SLD Telecom, Kommersant reported.

The government is expected to place shares of Vinaphone and MobiFone on the local market in 2007, while Vietnam Military Electronics and Telecommunications Co. may sell a 49% stake in Viettel, also in 2007, Kommersant reported.

Vinaphone and MobiFone had about 5 million users each as of late September, while Viettel had 3.6 million users, Vedomosti reported.

Altimo controls a 32.9% voting stake in Russia's second largest mobile operator VimpelCom and a 29% stake in U.S.-registered telecommunications operator Golden Telecom. It also indirectly owns about 44% in Ukraine's largest mobile operator Kyivstar, a 25.1% stake in Russia?s third largest mobile operator MegaFon and a 13.22% stake in Turkcell.

End"

Posted to the site on 23rd November 2006