Deal Overview

Latvia, through Latvenergo, ‍LVRTC, and state-owned investment firm Posessor, is⁣ set to⁤ acquire all shares of TET and LMT currently held by Telia. A Memorandum of Understanding (MoU) ⁣has ⁢been ⁤signed between⁣ Telia, Latvia, Latvenergo, and LVRTC, with the final agreement targeted for completion by the end of 2025 and the transaction expected to finalize in the first half‍ of ‍2026.

This acquisition aims to consolidate Latvian ownership of key telecommunications infrastructure‍ and services. The deal involves a ⁢complex restructuring of ownership across both ‍companies.

Current Ownership Structure

Currently, ‍the Latvian state, represented by Posessor, owns 51% ‍of TET, while Telia’s subsidiary, tilts ⁢Communications, holds the remaining⁣ 49%. ⁤ LMT’s ownership⁢ is more distributed: Telia and its subsidiary Sonera Holding own 49%, LVRTC holds 23%, TET⁣ owns 23%, and Posessor owns 5%.

Proposed Post-Acquisition ownership

Following‍ the completion of the acquisition⁤ and ⁣the introduction of a ⁣strategic ‍investor, Latvenergo ⁤Chairman Martins Čakste and Oak revealed that all parties involved – Latvenergo, LVRTC, Posessor, and the strategic investor – are⁢ anticipated to each hold approximately⁢ 25% of the shares in both TET and LMT. This⁣ structure aims to ensure broad participation and shared governance.

Valuation and Financial⁣ Details

When questioned about the ⁤potential ⁣price of ‍Telia’s stake in TET, estimated to be ⁢between EUR 500-600 million, martins Čakste confirmed the existence of ⁣a contract with Telia but declined to disclose ‍specific financial details, citing confidentiality agreements.he noted that financial data for both TET and LMT are publicly available, allowing for self-reliant calculations of share values.

Decision Timeline

Oak stated that early December is the timeframe for finalizing internal decisions regarding the transaction, allowing for a clear assessment of the deal’s ⁢parameters.

key Players

• Telia: The Swedish telecommunications company selling its stakes⁤ in TET and⁣ LMT.
• Latvenergo: Latvia’s largest energy company,⁤ playing⁤ a key role in the acquisition.
• LVRTC: Latvian Radio and Television Transmission Center, also participating in the acquisition.
• Posessor: A state-owned investment firm representing Latvian interests.
• TET: One of Latvia’s leading telecommunications operators.
• LMT: another major Latvian mobile network operator.
• Martins Čakste: Chairman of the Board of Latvenergo.
• Oak: (Full name not provided in source) Involved in the⁣ decision-making process.