MobiFone and AVG acquisition case to go to court The Government Inspectorate has proposed to investigate and prosecute those who involved in the Mobifone's acquisition of multimedia company Audio Visual Global.   MobiFone and AVG cancel acquisition agreement The inspectorate announced the initial investigation results on March 14 and concluded that Mobifone, the Ministry of Information and Communication, and related agencies had committed many violations in assessing AVG's financial situation and choosing consultants, allegedly leading to state budget losses of VND7trn (USD308m). Office of the Party Central Committee said this was a complex and serious case and related agencies must be transparent, strictly deal with violators to recover the embezzled money. In early 2016, Mobifone announced the acquisition of AVG to expand its television network, one of the company’s four main business areas. The details of the deal were not disclosed. In August 2016, the Government Inspectorate was asked to investigate the acquisition and announced that had found many violations. Mobifone and AVG agreed to cancel the transfer of 344 million shares and refund each other the amount received in the VND8.89trn (USD395m) failed acquisition. According to the AVG representative, there are many reasons for them to cancel the contract. Since its acquisition, Mobifone has not run and developed the AVG brand as planned and missed out on many opportunities. The deadline was over but Mobifone had only paid 95% of the acquisition. On March 13, the Ministry of Information and Communication said Mobifone had yet to pay the remaining 5% so that AVG could unilaterally end the deal. Mobifone may face a fine of over VND711bn (USD31m). AVG has faced continued difficulties since it was established. In 2015, it accumulated a loss of more than VND1.6trn (USD70m), 45% of its charter capital. When proposing to buy 95% of AVG's shares, Mobifone omitted the financial difficulties. It also didn't follow the bidding procedures in choosing consultants for the case. The results and numbers, therefore, are inaccurate. The acquisition hasn't been approved by the prime minister but the Ministry of Information and Communication already gave Mobifone the green light to proceed. The ministry also gave the exploitation rights over four channels to AVG and Mobifone without holding an auction. In addition, it had asked the Ministry of Public Security to give opinions on various issues that are not under the Ministry of Public Security's authority. The Ministry of Planning and Investment and the Government Office must also take responsibility for their inconsistent opinions on this case. dtinews.vn