Telia unveiled an initial agreement to sell its stakes in Latvian mobile operator LMT and fixed player Tet and launched a SEK3.1 billion ($320.1 million) takeover offer for Swedish broadband company Bredband2.
For its Latvian assets, Telia signed a memorandum of understanding (MoU) with the Latvian state, Latvenergo and LVRTC to sell its 60.3 per cent stake in LMT and 49 per cent holding in Tet at what it describes as a fair market value.
Expected financial terms were not disclosed and a final agreement is expected to be signed by the end of the year. The deals are expected to close in H1 2026.
Telia CEO Patrik Hofbauer said the MoU is a “milestone for us and for Tet and LMT, who will now have the possibility to develop further under a new ownership model, in turn benefitting their customers and all stakeholders”.
Broadband play
Shortly after announcing its Latvia plan, Telia launched an offer to buy Bredband2 for SEK3.25 per share, a deal worth SEK3.1 billion.
In the offer document, Telia noted the five largest shareholders at Bredband2, representing more than 50 per cent of outstanding shares, planned to accept.
It has also been backed by the target company’s board.
Hofbauer said bringing together Bredband2’s offering with its own would provide “strategic and operational advantages” and the combined business would be “well positioned to deliver a stronger and more competitive offering to consumers and businesses throughout Sweden”.
The deals were announced ahead of its H1 results, where it booked revenue of SEK39.8 billion, up 2.2 per cent year-on-year.
Net profit was SEK2.9 billion, down from SEK5.6 billion in H1 2024. However, Telia noted the comparison period included a gain from selling its business in Denmark.
Hofbauer said during Q2, the company “continued to execute on our commitment to invest in our core business and actively manage our asset portfolio to become a simpler, faster and more efficient Telia”.