The decision to sell all its shares in the Latvian companies is due to the ownership structure, says Telia.
”The complex ownership structure has slowed down the possibility of developing the operations. Therefore, the letter of intent is a milestone for us, and for Tet and LMT which now have the opportunity to develop further under a new ownership model”, says Patrik Hofbauer, CEO and Group President at Telia, in a press release.
Telia's proportional ownership in these companies is 49 percent in Tet and 60 percent in LMT. What the deal means in numbers is not disclosed, but according to Hofbauer, the offer for sale reflects a ”fair, market-based valuation” of the companies.
In addition to the Latvian state, there are two state-owned companies among the potential buyers, the energy company Latvenergo and the data storage company LVRTC.
The parties intend to enter into an agreement by the end of 2025 and are aiming to complete the transaction during the first half of next year.
The announcement comes the day before Telia's interim report is presented.
