Telia considers LMT/Lattelecom options after govt rejects merger proposal

9 Nov 2017

Sweden’s Telia Company has said that it is assessing its options for its Latvian operations following repeated rejections of plans to merge fixed and wireless players Lattelecom and Latvijas Mobilais Telefons (LMT) – in which Telia holds 49% and 60.3% stakes, respectively. Telia said in a statement that for the past decade it had put forward ‘every single option’ regarding the operators’ development to the Latvian government but all had been rejected. As such, the group would now consider the situation and the government’s decision, and assess its options. The announcement followed the government’s dismissal earlier this week of Telia’s most recent proposal to combine the two entities. Leading up to Riga’s decision, Telia had warned that it may look to sell off its shares in the companies if the government continued to block development plans for the duo.

The group added: ‘It is disappointing that the government has not only rejected the solutions recommended by the independent consultants and its own inter-ministerial working group, but has also failed to provide an alternative strategy regarding the development of the two companies and the country’s digital sector. The negative decision is detrimental for both LMT and Lattelecom and ultimately to Latvian society and the wider economy.’

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