Government Nears Decision on LMT and Tet Share Buyout: 23 Investors Show Interest
23 investors are in advanced talks to acquire Telia's shares in LMT and Tet. The government reviewed the deal's progress in an emergency meeting and aims to choose an investor that best serves Latvia's interests.
Economy Minister Viktors Valainis announced on Friday that 23 investors are currently engaged in in-depth negotiations regarding the potential buyout of shares in SIA Latvijas mobilais telefons (LMT) and SIA Tet from Swedish telecom company Telia. The statement followed an emergency government meeting where an informative report on the deal's structure and progress was reviewed.
Valainis did not disclose the names of the investors but noted that 23 internationally recognized investors with significant experience in various business sectors have expressed interest. The minister emphasized that the broad pool of candidates will allow the government to select the investor whose offer and vision best align with Latvian interests. A deep valuation of the companies is underway, and the next step involves preparing binding offers where investors will outline conditions for cooperation with the state.
Valainis also mentioned that the deal amounts are substantial and that security institutions will need to conduct background checks on the investors. Prime Minister Andris Kulbergs added that this is a massive deal that has not been accomplished in over 15 years. He stressed the need for transparency and for state interests to be represented. According to Kulbergs, a strategic investor is required to bring international experience and technological capabilities to the companies.
Currently, the state, through Possessor, owns 51% of Tet, while Telia's subsidiary Tilts Communications holds 49%. In LMT, Telia and Sonera Holding together own 49%, LVRTC owns 23%, Tet owns 23%, and Possessor owns 5%. After the buyout of Telia's shares and the involvement of a strategic investor, each party – Latvenergo, LVRTC, Possessor, and the strategic investor – could hold approximately 25% of the combined equity in both companies.
The government did not make a final decision on Friday but issued tasks to the advisors. The consulting team, led by U.S.-based J.P. Morgan, was selected from 16 candidates in a three-month international selection process. The contract with the advisors is performance-based. The deal timeline targets signing a share purchase agreement in July this year, completion of the transaction, and attracting a strategic investor in the second half of 2026.
