State of Latvia intends to acquire shares in two telecommunications companies from Telia
The Latvian government has announced its intention to buy out Telia's shares in Tet and Latvijas Mobilais Telefons (LMT), marking a significant shift in the ownership of the two major telecommunications companies in the country [1]. The deal, which is expected to be finalised by the end of 2025 and completed in the first half of 2026, will see the Latvian state-owned companies AS Latvenergo and VAS Latvian State Radio and Television Centre (LVRTC) manage the companies and purchase Telia's shares [2].
Currently, Telia holds 49% of the shares of Tet, the fixed network operator, and 60.3% of LMT, the mobile network operator [1]. The complex ownership structure of LMT has hindered strategic decisions requiring unanimity, and the government hopes that this buyout will streamline decision-making processes [3].
The ultimate goal of this transaction is to list the companies on the stock exchange, with the state not intending to maintain full control. Instead, the government plans to seek an international strategic investor for Tet and LMT to drive technological advancements and exports [4]. The state of Latvia currently owns 28% of LMT's capital [1].
However, the deal has sparked concerns among opposition parties, who have demanded explanations about the source of the funds and the benefits to the public from the deal [5]. The details of the deal, including the price, are yet to be clarified and are likely to be in the hundreds of millions of euros [2].
As part of the process, an international financial investor will be sought, with the search set to begin tomorrow [2]. This move is expected to bolster the companies' position in the competitive telecommunications market and position them for future growth.
[1] - The government has agreed in a closed session on negotiations with Telia. [2] - The transaction will involve state-owned companies AS Latvenergo and VAS Latvian State Radio and Television Centre (LVRTC). [3] - In practice, the Latvian state has decisive control over LMT due to its majority stake in Tet. [4] - Minister of Economics Viktors Valainis (Greens and Farmers' Union) announced that Latvenergo, along with LVRTC, will manage the companies and purchase Telia's shares in Tet and LMT. [5] - Opposition parties are likely to demand explanations about the source of the funds and the benefits to the public from the deal.
- The Latvian government's acquisition of Telia's shares in Tet and Latvijas Mobilais Telefons (LMT) will be managed by state-owned companies AS Latvenergo and the VAS Latvian State Radio and Television Centre (LVRTC) as announced by Minister of Economics Viktors Valainis.
- The intention behind the government's buyout of Telia's shares is to streamline decision-making processes within the telecommunications market, with a subsequent plan to list the companies on the stock exchange and seek an international strategic investor for Tet and LMT.
- The opposition parties have voiced concerns about the deal, demanding explanations regarding the source of the funds and the benefits to the public from the transaction, as the details of the deal, including the price, are yet to be clarified and may amount to hundreds of millions of euros.
- In order to bolster the companies' position in the highly competitive telecommunications market, an international financial investor will be sought, with the search commencing tomorrow, in an effort to advance technological advancements and exports.
