Latvia, Legislation, Markets and Companies, Mergers and take-overs, Technology, Telecomunications
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Wednesday, 24.04.2024, 22:55
Government decides not to merge LMT and Lattelecom
As reported, the Economics Ministry had submitted to the government a
report on further actions regarding the state-owned holdings in Lattelecom and LMT.
Already after the coalition cooperation council’s meeting on Monday it was
admitted that the government might not support the telecommunications
operators’ merger. The National Alliance, which discussed the issue at its
board meeting, decided to reject the merger plan. Roberts Zile, a board member of the National Alliance, told LETA after the party’s meeting that he
had not heard any sound argument to support the merger.
Augusts Brigmanis, head of the Greens/Farmers' Saeima group, said after the coalition's
meeting on Monday that it would be logical not to merge the two companies as
there were too many unanswered questions about the deal, and the coalition was
not unanimous.
Scandinavia’s Telia Company has
warned the Latvian government that it could sell its shares in Latvijas Mobilais Telefons (LMT) and Lattelecom if the two companies are not merged, according to Telia Senior Vice President Robert Andersson's letter to the
government.
Telia Group companies Sonera Holding and Telia Company own 49% of LMT shares altogether, while Latvian
Radio and Television Center and Latvian Privatization Agency - 28%. Lattelecom, which belongs to Telia and the state of Latvia, owns 23%
of LMT shares.
Telia Group company Tilts Communications owns 51% of Lattelecom shares, and Latvian Privatization Agency the other 49%.