:format(webp)/nginx/o/2025/07/15/17006362t1h479c.jpg){kind=link}
Telia to Sell Latvian Assets: Latvenergo, LVRTC, and Potential Strategic Investor in Talks
Table of Contents
Latvia is poised to gain greater control over its telecommunications infrastructure as Telia Company has entered into negotiations to sell its shares in both “TET” (officially Tet) and LMT, the country’s two major telecom operators.A Memorandum of Understanding (MoU) has been signed with the Latvian government, Latvenergo, and LVRTC, with a final agreement anticipated by the end of 2025 and completion of the transaction in the first half of 2026. This move aims to strengthen Latvian ownership and foster further growth within the sector.
Details of the Proposed sale
The deal involves Telia divesting its entire stake in both Tet and LMT.Currently,the ownership structure is as follows:
Tet: State-owned “Public Active Manager” (through Posessor) holds 51%,while Telia’s subsidiary,Tilts Communications,owns the remaining 49%.
LMT: Telia and its subsidiary Sonera holding collectively own 49%,with the Latvian side holding 23% through LVRTC,Tet owning 23%,and Posessor holding 5%.
According to Martins Čakste, Chairman of the Board of Latvenergo, the price of Telia’s stake in Tet is estimated to be between EUR 500-600 million, though he refrained from confirming the exact figure due to contractual obligations. https://www.leta.lv/eng/home/news/business/2024/08/26/telia-latvia-to-sell-tet-lmt-shares-to-latvenergo-lvrtc-posessor-and-strategic-investor-24082601/
Future Ownership Structure
Following the completion of the sale and the potential attraction of a strategic investor, the ownership of both companies is expected to be distributed more evenly.Latvenergo, LVRTC, Posessor, and the strategic investor could each hold approximately 25% of the shares in both Tet and LMT. This redistribution aims to create a more diversified ownership base and encourage long-term investment and innovation.
strategic Implications for Latvia
This transaction represents a significant step towards strengthening Latvia’s control over its critical telecommunications infrastructure. The involvement of Latvenergo and LVRTC, both state-linked entities, underscores the government’s commitment to national interests in this sector. The addition of a strategic investor is expected to bring valuable expertise and capital to further develop the companies.
“We have blocks and we can make some internal decisions,” stated Oak, indicating a degree of adaptability and control that will be afforded to the Latvian stakeholders.
Key Takeaways
Telia is selling its shares in Tet and LMT to a consortium including the Latvian government, Latvenergo, and LVRTC.
A final agreement is expected by the end of 2025,with the transaction concluding in the first half of 2026.
The estimated value of Telia’s Tet stake is EUR 500-600 million.
The new ownership structure aims for a 25% shareholding for each of Latvenergo,LVRTC,Posessor,and a strategic investor.
* This deal signifies Latvia’s increased control over its telecommunications sector.
Looking Ahead
The successful completion of this deal will be a landmark event for the Latvian telecommunications landscape. The focus will then shift to integrating the new ownership structure and leveraging the combined expertise of the stakeholders to drive innovation and enhance services for consumers and businesses alike. The selection of a strategic investor will be a crucial step in realizing these goals.