State-owned Lithuanian Radio and Television Centre (LRTC, also known as Telecentras) has signed an agreement to sell its internet, data transmission and IPTV business to mobile operator Bite. Bite’s offer for the unit, known as MEZON, was chosen because it was the highest – at more than EUR20 million (USD21.8 million) – and ‘best met the requirements of the purchaser’. The agreement is subject to approval by the Competition Council and other market surveillance authorities, following which MEZON’s business will be integrated gradually into Bite, which is managed by US private equity fund Providence Equity Partners
‘Telecentras is selling the MEZON business because it links its future to core activities – transmission of television and radio programmes – and state IT infrastructure development projects. As the market situation changed, the company’s administration and board decided to focus the company on the development of infrastructure projects important to the state. In order for a company to effectively implement these projects, it must no longer provide the retail services. That is why last year a strategic decision was made to separate them into a separate asset unit and sell them,’ explained Vidas Danielius, Chairman of the Board of Telecentras.