Vietnam’s national broadcaster VTV hurried to divest from K+ operator VSTV
VTV’s divestment from the joint venture must be carried out in a cautious manner as it involves French cable television channel Canal+.
Deputy Prime Minister Vuong Dinh Hue considered Vietnam Television (VTV)’s proposal to divest from loss-making Vietnam Satellite Digital Television Company (VSTV), the service provider of pay-TV Kplus (K+) is urgent and necessary, local media reported.
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The Deputy PM requested the Ministry of Information and Communications to work with the Ministry of Justice to review legal documents on VSTV’s charter and its establishment, so that the divestment would ensure legal rights of the Vietnamese side.
Additionally, Hue instructed VTV to let the State Audit Office of Vietnam (SAV) clarify VSTV’s financial and business conditions, while the report on VSTV’s business performance as of 2018 must be submitted to the prime minister in January 2019.
Since the third quarter of 2015, VTV has planned to divest from three pay-TV service providers, including Saigontourist Cable Television Company (SCTV), Vietnam Cable Television (VTVcab), and VSTV.
Under the plan, VTV would sell a major proportion of its shareholding in VSTV and SCTV, and 49% stake in VTVcab.
Established in 2009, VTV currently holds 51% stake in VSTV and Canal+ 49%, however, the K+ service provider has been sustaining loss for many years.
In 2015, K+ posted revenue of VND1.25 trillion (US$53.81 million) and a loss of VND89 billion (US$3.83 million). In the next two years, the losses expanded to VND301 billion (US$12.95 million) and VND448 billion (US$19.28 million), respectively, accumulating a total of VND2.73 trillion (US$117.53 million) as of the end of 2017.
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Read The Hanoi Times to stay up to date on developments in Vietnam.
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