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After considering various investment options, Baltcom has decided to accept the mezzanine financing deal offered by Providence in order to raise capital for the company's further development, informed Baltcom representatives.

Baltcom's existing investors - Ardian and Resource Partners - remain the company's majority shareholders, the company said.

Legally, Baltcom belongs entirely to the Luxembourg-registered Rpax One S.A. At the beginning of June, Rpax One S.A. shareholders increased the company's share capital by EUR 50,000 to EUR 174,940 and decided to sell the newly issued shares, which make up 28.5 percent of the company's capital, to Latvian mobile operator Bite Latvija for EUR 3.5 million.

The total value of the deal is not being disclosed.

Bite representative Anete Jansone told that a "deal has been concluded in which Bite's investor Providence together with Bite invests money in Baltcom".

"This is a business-oriented step to help Baltcom attain its goals," Jansone said, adding that the investors would benefit from the deal as well.

The financing is expected to enable Baltcom to increase investments in its telecommunications network and technologies to improve the quality of its services and speed up the company's growth, including through acquisitions.

As reported, In February this year, Mid Europa Partners, a private equity investment firm, sold Bite Finance International, the owner of mobile telecoms companies in Lithuania and Latvia, to Providence Equity Partners, a leading global asset management firm.