TeliaSonera increases TEO stake, offers to buy out remaining shareholders

8 May 2012

TeliaSonera has agreed to purchase a 7.87% stake in Lithuania’s incumbent fixed line operator TEO LT, thereby lifting its total ownership in the company from 68.29% to 76.16%, the Sweden-based telecoms group announced in a press release. TeliaSonera will acquire the shares from East Capital for EUR0.637 (USD0.829) per share, equivalent to a total cash consideration of EUR38.9 million; the deal is scheduled to close on 10 May 2012. Once all related approvals for the transaction are received, the company will invite all other shareholders of TEO LT to participate in a voluntary takeover bid for the remaining outstanding shares. TeliaSonera will offer EUR0.637 per share in cash, corresponding to a total amount of approximately EUR118.0 million. The takeover bid is not conditional and has no minimum threshold of shares tendered. ‘With this acquisition we continue to execute on our strategy to increase the ownership in our core holdings,’ said Per-Arne Blomquist, executive vice president and CFO of TeliaSonera, adding: ‘Following our agreement to acquire East Capital’s stake in TEO LT, we have also decided to give the same opportunity to all shareholders. If they find our takeover bid attractive, all shareholders will be able to sell their shares at the same price as East Capital received, but we intend to keep the company listed as long as there is a reasonable free float.’

Lithuania, Telia Company, Telia Lietuva