The parties aim to sign a definitive agreement by the end of 2025, with the transaction expected to be completed in the first half of 2026.
“We are pleased to have reached a common view on the best way forward for these great Latvian companies. We have agreed to proceed towards the intended transaction, where our offer to divest our shares reflects a fair market value of Tet and LMT.
“The complex holding structure of Tet and LMT has slowed value creation. This MoU is therefore 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,” said Patrik Hofbauer, President and CEO of Telia, in the statement.
Minister of Economics Viktors Valainis (Greens and Farmers Union) said on Friday morning’s Latvian Television newscast that another international investor would be sought after the buyout of the company’s shares from Sweden’s Telia. There are no plans to keep both companies fully under state control. Valainis admitted: “It would not be a good sign if the state were to go it alone in this [telecoms] business.”
It is expected that this year could shed light on the type of investor to be attracted. This would also prepare the companies for a stock market listing. Valainis said that interest from investors was high.
The Minister said that with the new investor, he hoped to develop technology and exports. Telia has not been the way to go, as the Swedish company only focuses on local services in each country where it is located. Telia has also not been supportive of security and defence cooperation.
The Minister did not disclose the possible price of the buy-back from Telia, but said that it would be in line with the market price.
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