Telia Company has agreed to sell 100% of its Latvian subsidiary to the Latvian incumbent Tet for €10.75 million on a cash and debt free basis.
The transaction is subject to customary regulatory approvals and is expected to close during the second quarter of 2022.
Telia Latvia was founded in 1992 and is today a leading B2B telecom services provider. It has 46 employees and offers large businesses across Latvia solutions within four services segments: telecommunications services, cloud services, data centre solutions and media solutions.
Meanwhile, Tet is a local technology and entertainment operator in Latvia, offering a full range of ICT and pay-TV services to households, businesses, the government and municipal institutions, as well as electricity and other services. Itis owned by the Republic of Latvia (51%) and Tilts Communications (49%), a wholly owned Telia Company entity. In addition to its minority holding in Tet, Telia Company also owns 60.3% in the leading Latvian mobile operator LMT.
Commenting on the transaction, Andreas Ekström, Telia Company head of Latvia, said: “We have run a competitive auction process for the sale of Telia Latvia during the autumn where a significant number of potential buyers were invited. We are pleased that we have now reached an agreement with Tet who with this acquisition will strengthen its positions withing the enterprise segment with Telia Latvia’s network and technology assets and highly skilled employees. Latvia is a highly interesting ICT market and Telia Company remain committed to continue contributing to the digitalisation of Latvia with our engagement in Tet and LMT”.
Uldis Tatarcuks, CEO of Tet, added: “Tet’s strategy is to accelerate growth via acquisitions, and we are very excited about the opportunity to acquire Telia Latvia. We believe our businesses complement each other, especially within our data centre and transmission business. We look forward to welcome Telia Latvia and its employees to Tet and together develop the business to the benefit of our customers, employees and the Latvian society at large”.
