Swedish telco Telia strikes Latvian government deal for Tet, LMT stock repurchase agreement
In a significant development, the Latvian government has announced plans to seek an international investor for its telecom companies Tet and LMT, following the buyout of shares from Sweden's Telia. The move is aimed at enhancing technology development, export growth, and preparing the companies for a potential stock market listing.
The decision to attract a new investor is expected to improve value creation and foster a diversified ownership structure, as the government does not plan to keep both companies fully under state control. According to Viktors Valainis, the Minister of Economics, this investment will aid in the development of technology and exports, focusing on expanding the companies' international presence.
The transition is expected to benefit customers and all stakeholders, with the potential to improve services and infrastructure. The transaction, which is expected to be completed in the first half of 2026, is a significant step towards a new ownership model for Tet and LMT.
Patrik Hofbauer, President and CEO of Telia, has made a statement about the agreement, although the identity of the potential new investor remains undisclosed. The Minister has expressed high interest from potential investors and expects to attract one this year. The offer to divest shares of Tet and LMT reflects a fair market value, with the price of the buy-back expected to be in line with the market price.
The Minister has emphasised the need for a new investor, as Telia has not been the best option in terms of security and defence cooperation. Telia, for its part, has agreed to proceed towards the intended transaction, having focused on local services only in each country where it is located.
The process of finding a suitable investor will be facilitated by an international consultancy, with the aim to sign a definitive agreement by the end of 2025. The development is expected to bring a fresh perspective and expertise to Tet and LMT, providing them with the possibility to develop further under a new ownership model.
The decision to seek an international investor for Tet and LMT is expected to expand the companies' international presence and diversify their ownership structure, as mentioned by Viktors Valainis, the Minister of Economics. This investment is anticipated to aid in the development of technology and financing, with the potential to boost services and infrastructure, as stated in the plan announced by the Latvian government.
