- After the auction, Telia has agreed to sell 100% of the shares of Telia Latvia, a leading B2B telecommunications service provider, to Tet.
- The sale price corresponds to a company value of EUR 10.75 million excluding cash and debt, which is a 10x EV / EBITDA multiplier for fiscal year 2021e
- Telia is still loyal to Latvia, owning 49% of the fixed network operator Tet and 60.3% of the mobile operator LMT.
Telia has today entered into an agreement to sell its 100% stake in Telia Latvija SIA (“Telia Latvia”) to Tet SIA (“Tet”) for a corporate price of EUR 10.75 million in cash and a zero principal amount. The price is a 10x EV / EBITDA multiplier for fiscal year 2021e. The transaction is subject to normal regulatory enactments and is expected to close in the second quarter of 2022.
Telia Latvia was founded in 1992 and is currently the leading provider of B2B communication services. The company employs 46 people and provides solutions to large companies throughout Latvia in four service sectors: telecommunications services, cloud services, data center solutions and media solutions.
Tet is a local technology and entertainment company in Latvia that provides a full range of ICT and pay-TV services to homes, businesses, state and municipal institutions, as well as electricity and other services. Tet is owned by the Republic of Latvia (51%), represented by SIA Public Asset Manager Possessor and Telia’s wholly owned subsidiary Tilts Communications A / S (49%). In addition to the minority stake in Tet Telia, it also owns 60.3% of Latvia’s leading LMT.
Andreas Extreme, President of Telia Latvia, says: “In the autumn, we conducted a competitive auction process to sell Telia Latvia, in which a large number of potential buyers were invited. We are pleased that we have now reached an agreement with Tet that through this acquisition will strengthen its position in the corporate sector with a network of Telia Latvia, its technology active and highly qualified employees. Latvia is a very interesting ICT market, and Telia is still committed to continuing to contribute to Latvia’s digitalization through Tet and LMT. ”
Tet CEO Uldis Tatarčuks says: “Tet’s strategy is to accelerate growth through acquisitions, and we are very pleased to have the opportunity to acquire Telia Latvia. We believe that our business is complementary, especially in the data center and transportation business. We look forward to welcoming Telia Latvia, and its Tet employees are working together to develop the business for the benefit of our customers, employees and the entire Latvian community.
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