TeliaSonera combines Lithuanian fixed, mobile units

6 Oct 2015

Swedish telecoms group TeliaSonera has announced that it is combining its two Lithuanian subsidiaries, fixed line operator TEO LT and mobile phone company Omnitel. The move will see TEO acquire Omnitel for EUR220 million (USD246.9 million) on a cash and debt free basis, with the combination estimated to generate annual synergies of around EUR10 million when implemented. TEO will use external financing for the acquisition and TeliaSonera’s ownership in TEO will remain at 88.15% following the transaction.

‘Consumers no longer make a distinction between fixed and mobile services and the demand for converged offerings is steadily increasing,’ commented Robert Andersson, chairman of the TEO board, adding: ‘The combination of TEO and Omnitel will create a leading, fully converged telecom operator and strengthen the market position through clear synergies and enhanced customer proposition.’ The transaction is expected to be finalised in the first quarter of 2016 at the latest.

Lithuania, Omnitel, Telia Company, Telia Lietuva