Latvia considers buyout and merger of Tet and LMT

Latvian Economy Minister Viktors Valainis stated that purchase agreements for shares of Tet and LMT currently owned by Telia could be finalized by the end of this year. The government has reached a consensus on two primary objectives: the buyout of Telia's stakes in both companies and the subsequent merger of the two entities.

Discussions are ongoing regarding the financing model for the transaction. While the initial mandate was to develop a solution without direct state budget involvement, the government is now positively evaluating the possibility of using state funds. A solution that does not require direct budget involvement is approximately 90% complete.

Valainis noted that company evaluations, future strategies, and risk assessments have been conducted. The final progression of the deal depends on political decisions and the commitment of the new government. The specific transaction amount remains confidential commercial information, though the minister suggested there is still potential to negotiate a lower price.