Latvia’s Bid to Repurchase Telia Telecom Shares: Negotiations Progress
Latvia’s Ministry of Economy (ME) is poised to update the government on the latest developments in its ongoing negotiations with Swedish telecom giant Telia Company.The ME is currently evaluating a counter-offer from Telia regarding the potential repurchase of all Telia’s shares in Latvian telecommunications companies SIA “Tet” and SIA “Latvijas Mobilais Telefons” (LMT).
The exact amount the Latvian government authorized the ME to offer remains undisclosed, classified as a commercial secret. This information will only be released publicly if Telia agrees to its disclosure.
Economy Minister Valaniis offered a cautiously optimistic assessment of the talks. “Telia has responded to our offer,” Valaniis stated.”We are having a very constructive dialogue. They have expressed their vision,how it could go further,what amounts they would also be willing to discuss. I would say that we are not far from each other, since its understanding could also arise here.”
While the minister refrained from providing specifics, citing the confidential nature of Telia’s response, the statement suggests meaningful progress in the negotiations.
Background: Latvia’s December Offer
On December 18, 2024, the Latvian government officially authorized the ME to make an offer to Telia for the repurchase of its shares in Tet and LMT. The potential cost of this transaction remains confidential and will only be revealed upon Telia’s acceptance of the offer. This strategic move aims to bolster Latvia’s control over its crucial telecommunications infrastructure.
Telia’s initial response, expected within a month of the offer, indicated a willingness to consider the sale. However, Telia made it clear that the final decision hinges on the appropriateness of the price offered by the Latvian government.”Telia has expressed readiness to overbuy ‘Tet’ and LMT shares, if the price offered by Latvia is not appropriate,” according to previous reporting.
The outcome of these negotiations holds significant implications for Latvia’s telecommunications sector and its broader economic strategy. The prosperous acquisition of these shares would represent a major step towards greater national control over essential dialogue networks.
