Telia Company has announced its intention to divest its shares in the Latvian telecommunications companies Tet and LMT. This decision follows a memorandum of understanding (MoU) signed with the Republic of Latvia, Latvenergo, and LVRTC. The Latvian state will assume control of these significant players in the nation's telecommunications infrastructure.
“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,” stated Patrik Hofbauer, Telia Company President and CEO. He further emphasized that the complex ownership structure had hindered 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.”
Earlier announcements confirmed the involvement of Latvenergo and LVRTC in managing the companies. The parties aim to finalize a comprehensive agreement by the end of 2025, with the transaction anticipated to close in the first half of 2026. Telia’s current stake comprises 49% of Tet's shares and 60.3% of LMT's shares. This transaction marks a significant change in the ownership and management of two key players within Latvia's telecommunications sector.