TeliaSonera permitted to take 100% of TEO LT by competition regulator

11 Sep 2009

Lithuania’s Competition Council has approved a bid by Swedish-based telecoms group TeliaSonera to acquire all shares it does not already own in its Lithuanian fixed line subsidiary TEO LT. On its website yesterday, the Competition Council published a resolution approving TeliaSonera’s plan to acquire up to 100% of shares in TEO LT, after it decided that the transaction would not lead to the creation or strengthening of a dominant position or any significant weakening of competition in relevant telecommunications markets. At present, TeliaSonera controls 60% of equity and 62.94% of voting shares in TEO LT via wholly-owned Amber Teleholding (which also owns 100% of Lithuania’s leading cellco Omnitel). TeliaSonera has offered a total of LTL527 million (USD221 million) for the remaining shares in TEO LT. According to the telco’s statement on 24 August, its ownership bid is not conditional on gaining a certain acceptance level and the acceptance period is expected to run from 9 September 2009 to 9 October 2009.

Concurrent to the TEO LT offer, TeliaSonera offered a total of EEK5.1 billion (USD473 million) for all minority shares in its 60.1%-owned Estonian wireless and wireline holding company Eesti Telekom. At the end of last week it was reported that the group had bought an additional 0.85% of Eesti Telekom so far, whilst Estonian banks had reportedly reached an agreement with the Nordic firm to sell shares in both Lithuanian and Estonian subsidiaries.