JPMorgan Leads Advisory Role in Latvian Telecom Buyout of Tet and LMT

A consortium led by JPMorgan Chase & Co. Has been selected to advise on the Latvian state’s acquisition of shares in Tet and Latvijas Mobilais Telefons (LMT) from Swedish telecommunications group Telia Company. The deal, expected to be finalized in July 2026, aims to reshape Latvia’s telecommunications landscape and attract new strategic investment.

Deal Structure and Advisors

The advisory consortium, in addition to JPMorgan, includes A&O Shearman, Deloitte, Hardiman Telecommunications, TEGOS, and WALLESS. These firms will advise Latvenergo, the Latvian State Radio and Television Centre (LVRTC), and state asset management company Possessor throughout the buyout process. Via Baltica reports the agreement was signed at the end of January.

The advisors’ responsibilities encompass structuring the acquisition, selecting potential investors, organizing the transaction’s completion, and developing a future strategy for Tet and LMT. A thorough due diligence assessment of both companies is likewise underway. Latvenergo announced the contracts were signed after a three-month international selection process involving 16 candidates.

Timeline and Ownership Outlook

The Ministry of Economy anticipates the share sale agreement will be signed in July 2026, with the completion of the transaction and the attraction of a strategic investor planned for the second half of 2026. Following the buyout and the introduction of a new investor, it is anticipated that Latvenergo, LVRTC, Possessor, and the strategic investor will each hold approximately 25% of the shares in both Tet and LMT. Baltic News details this potential ownership distribution.

Current Ownership Structure

Currently, the Latvian state, through Public Asset Manager Possessor, owns 51% of Tet, while Telia’s subsidiary Tilts Communications holds the remaining 49%. In LMT, Telia and its subsidiary Sonera Holding collectively own 49%, with the Latvian state (through LVRTC and Possessor) owning 28% and Tet holding 23%.

Contract Details

The financial terms of the advisory contract are dependent on the successful outcome of the transaction, incentivizing the advisors to achieve favorable results. Specific details of the contract remain confidential as a trade secret.