Latvia mulls Lattelecom, LMT merger

9 Aug 2013

The Latvian government is considering merging its fixed line and mobile operators, Lattelecom and Latvijas Mobilais Telefons (LMT) respectively, Reuters writes. Latvia’s economic ministry responded to local reports that the state was preparing to sell its remaining stake in the two companies by saying: ‘A privatisation of the companies is not discussed, but we are reviewing possible management models for the companies to ensure an increase in their value. A consolidation of the companies is considered as one of the options, with the state remaining a majority shareholder.’ Reuters cites an unpublished report from the ministry as saying that a merger could increase the value of the companies by LVL45 million (USD85.55 million).

TeleGeography’s GlobalComms Database notes that the government has a 51% stake in Lattelecom, whilst the remainder is held by Swedish group TeliaSonera. Similarly, LMT is owned 49% by TeliaSonera, Lattelecom (23%), Ministry of Transport subsidiary the Latvia State Radio and Television Centre (23%) and the Ministry of Transport (5%). Through its equity in Lattelecom, TeliaSonera’s holding in the cellco is equivalent to 60.3%.

Latvia, Latvijas Mobilais Telefons (LMT), Telia Company, Tet (Lattelecom Group)