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Monday, 26.05.2025, 06:06
KPMG proposes merger of LMT and Lattelecom operators
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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.
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