The Supervisory Authority of the Bank of Lithuania has approved the merger of mobile service provider Omnitel into fixed line operator TEO LT, in a move aimed at combining Telia Company’s Lithuanian subsidiaries. The announcement was made by TEO LT in a statement published on the Nasdaq Baltic Stock Exchange. In January 2016 TEO LT completed the acquisition of Telia Company’s 100% stake in Omnitel for EUR220 million (USD241 million). As a result of the transaction, Telia continued to own 88.15% of shares in TEO, but also indirectly held 88.15% in Omnitel. To help finance the deal, SEB Bank and Danske Bank provided TEO with a loan of EUR150 million in two equal instalments of EUR75 million.
TEO LT and Omnitel reported consolidated revenue of EUR86.8 million in the third quarter of 2016, an increase of 3.6% year-on-year, while EBITDA, excluding one-off costs, rose by 4.7% to EUR30.3 million. ‘Smooth integration of the companies, implemented large IT projects and growing sales of mobile and fixed communication services led to the best common result of TEO and Omnitel so far,’ commented Kestutis Sliuzas, CEO of TEO and Omnitel, adding: ‘The number of broadband internet users exceeded 400,000, while the number of post-paid mobile service users has already crossed one million. This year, we have already spent EUR9.7 million on the development of mobile networks and were the first [operator to finish] covering the territory of the country with 4G LTE.’