Latvia halts Tet and LMT share buyout from Telia

Latvian Prime Minister Andris Kulbergs has halted the process of repurchasing shares from the Swedish company Telia in the telecommunications firms Tet and LMT. The decision follows reports regarding high consultancy expenditures related to the deal, which has been in development for approximately four years.

The acquisition process was divided into two phases: ‘Sprint’, which involved evaluating transaction scenarios, and ‘Milda’, intended for due diligence and securing investors. As of August 31, approximately 4.47 million euros had been paid to consultants. While there are concerns that costs could reach 13.6 million euros by the end of the year if the process continues, current expenditures are closer to the 4.5 million euro mark.

Prime Minister Kulbergs has called for the simplification of the process, suggesting that Tet and LMT should be merged and a strategic investor sought. However, Economy Minister Viktors Valainis has disputed the Prime Minister's claims, stating that Kulbergs has not discussed the matter with him and that the public figures regarding expenditures do not align with reality. Valainis maintains that in-depth research and company valuation remain necessary regardless of the final solution.