VNPT to fully divest from tech-telecom firm TTN as part of restructuring plan

State-run Vietnam Posts and Telecommunications Group (VNPT) intends to divest its entire 5.45% stake, or two million shares, in Vietnam Technology & Telecommunication JSC (UPCoM: TTN) as part of its government-mandated restructuring plan.

According to VNPT’s latest filing, the off-exchange transaction is scheduled between November 12 and December 11. The shares are held under the management of Vo Thi Thanh Huong, a TTN board member who does not personally own any TTN shares.

VNPT’s divestment aligns with Decision No. 620/QD-TTg, issued by the Prime Minister on July 10, 2024, approving the group’s restructuring plan through 2025, and Document No. 1944/UBQLV-CNHT from the State Capital Management Committee, which directs VNPT to withdraw capital from 24 non-core subsidiaries to focus on digital infrastructure and core telecom services.

VNPT had earlier offered the TTN stake for public auction on November 3 at a starting price of VND28,492 ($1.08) per share, valuing the lot at about VND57 billion ($2.17 million). TTN shares currently trade around VND17,000 ($0.65). Saigon-Hanoi Securities (SHS) acted as auction organizer and advisor.

The telecom group also plans to sell its 30% stake, or 360,000 shares, in Posts and Telecommunications Construction Services JSC (UPCoM: PTO) through public auction, starting at VND50,598 ($1.92) per share for a total estimated value of over VND18 billion ($685,000).

In addition, VNPT will auction 4.2 million shares of VNPT Electronic Payment JSC (VNPT EPAY) on November 17 at a starting price of VND17,588 ($0.67) per share, valuing the lot at roughly VND74 billion ($2.81 million), with SHS again serving as auction advisor.

These divestments reflects VNPT’s strategy to streamline its investment portfolio and concentrate resources on core digital transformation, telecom, and ICT infrastructure operations in line with government directives.

A document signed by Deputy Prime Minister Ho Duc Phoc in July shows that Telecommunication Services Corporation (VNPT-VinaPhone) and Communications Corporation (VNPT-Media) will be merged into their parent company VNPT. The merger aims to streamline operations, enhance management efficiency, and optimize the use of public investment.

In 2024, VNPT recorded total revenue of VND58.54 trillion ($2.24 billion), with the parent company contributing nearly VND42 trillion ($1.6 billion), equivalent to 100.1% of the year's target and a 7% increase over 2023.

The group's consolidated pre-tax profit reached nearly VND6.09 trillion ($233 million) in 2024, with the parent company earning nearly VND4.57 trillion ($174.8 million), equivalent to 103.3% of the plan and reflecting a 3% year-over-year rise.

The group contributed over VND5.48 trillion ($210 million) to the state budget in 2024.