Baltkom reveals two new strategic investors

14 Apr 2011

Latvian cableco Baltkom has secured strategic investment from two new partners, with the Baltic Course reporting that international investment funds Axa Private Equity and Resource Partners have both agreed to invest in the operator. The respective transactions are expected to be completed by the end of this month, and more details on the agreements will be made public in May 2011. Baltkom’s CEO Peteris Smidre said that the cash injection will be put towards the development of the opeator’s network and also help enhance its high speed internet offerings.

The announcement comes after it had looked as though Baltkom and rival cableco IZZI may merge; as previously reported by CommsUpdate, in November 2010 the country’s competition authority, Konkurences Padomes (KP), gave approval to a mooted tie-up of the duo. However, the would-be partners failed to reach an agreement, and last week it was claimed that IZZI had offered to acquire 100% of Baltkom’s stock, while IZZI chairman Helmut Kohl called for Smidre to relinquish any ties with Baltkom. For its part, Baltkom at that time revealed that it had found an investor for the development of its infrastructure, and in turn offered to buy all of IZZI’s shares.

Latvia, Baltcom, IZZI