LMT, Lattelecom privatisation against public interest, report concludes

10 Jan 2014

A report from the Latvian government has concluded that the privatisation of Lattelecom and Latvijas Mobilais Telefons (LMT) would not be in the interest of the nation, the Baltic Times writes. The press secretary of economy minister Daniels Pavluts was cited as saying that the value of the government’s shares in the two companies had decreased from LVL253.2 million (USD490.185 million) for LMT and LVL230.5 million for Lattelecom in 2012 to LVL199.4 million and LVL216.6 million respectively a year later. A task force established to look into the management of the government’s shares in the duo reported back to the cabinet, arguing against the possible sale of the state’s stakes but adding that management practices at the two firms needed to be improved in order for their respective values to increase. As noted by TeleGeography’s GlobalComms Database, representatives from both companies have advocated a merger of the two telcos as the best strategy for growth.

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