Latvia will not complete Telia stake buyout in Tet and LMT during current government’s term

Latvia’s caretaker government will not complete the purchase of Telia’s stakes in telecommunications companies Tet and LMT during its term, Economy Minister Viktors Valainis said.

Valainis said the government could not make such a consequential decision because it might act on political emotion rather than the country’s strategic interests. He said the administration’s main task was to prepare the transaction for a future decision.

Telia has agreed to extend the deadline for the deal until the end of the year. Work continues on valuing the companies and preparing the process so potential buyers can present final offers to the government. The potential investors include state-owned companies and a strategic investor, with initial offers expected during the week.

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It is completely clear that the deal will not be completed during this government's term.

In July, Valainis said 23 investors were engaged in detailed discussions about possible participation in the purchase of the stakes. The next phase involves binding offers that will set out the terms on which investors would work with the state.

Telia has signed a memorandum of understanding with Latvia, Latvenergo and the Latvian State Radio and Television Centre for the sale of all its shares in Tet and LMT. The Latvian state owns 51% of Tet, while Telia subsidiary Tilts Communications owns 49%. Telia and its subsidiary Sonera Holding together own 49% of LMT. After the buyout and the arrival of a strategic investor, the parties involved could each hold about 25% of the two companies.

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At present, we have reached an agreement with the other shareholder to extend this agreement until the end of the year.