Analytics, Latvia, Markets and Companies, Mergers and take-overs, Technology, Telecomunications

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 05:44

KPMG proposes merger of LMT and Lattelecom operators

BC, Riga, 13.06.2017.Print version
Audit firm KPMG tasked by the Latvian Privatization Agency to the government on further action concerning the state-owned shares in the telecommunications companies Lattelecom and Latvijas Mobilais Telefons (LMT), suggests to merge both companies and list shares on the Riga bourse, the Latvian public radio reported on Tuesday cites LETA.

As the possible scenarios have not yet been presented to politicians, no details on the study are revealed.


Privatization Agency’s board chairman Vladimirs Loginovs said that the proposal is a combination of the scenarios discussed earlier, and includes a possible merger, and listing on the bourse.


The auditors have estimated the additional value of the merged company. Even though the exact figures are not revealed, it is over EUR 100 mln in several years, said Loginovs.

The government will be soon presented the findings and study of the auditors, and discussions will follow. Economics Minister Arvils Aseradens promised that the future of the companies will be decided by fall.


As reported, Saeima public expenditure and audit committee today plans to discuss results of KPMG Baltics study and Economics Ministry’s proposals in relation to government-held shares in Lattelecom and LMT.


As reported, TeliaSonera proposed on November 20, 2015 that Lattelecom and LMT be merged. However, the government decided in April 2016 that LMT and Lattelecom would continue operations as two separate entities.


The government also decided to hire an independent consultant to perform macroeconomic, microeconomic and socioeconomic analysis of further actions concerning state-owned shares in Lattelecom and LMT. KMPG Baltics was then selected to help the government develop a strategy on state-owned shares in Lattelecom and LMT. Five companies applied in total, but KPMG Baltics' bid was the lowest - EUR 179,400.


Lattelecom board chairman Juris Gulbis has on several occasions spoken in support of merging the two companies, while LMT head Juris Binde said he did not see any reason why his company should be merged with Lattelecom.


According to Firmas.lv, the Netherlands-registered Sonera Holding B.V. owns 24.5% of LMT shares, Telia Company AB - 24.5%, Lattelecom - 23%, state-owned company Latvijas Radio un Televizijas Centrs - 23%, and Latvian Privatization Agency - 5%.


On the other hand, 51% of Lattelecom shares belong to the Privatization Agency and the other 49% to Tilts Communications.






Search site