Swedish representatives do not support LMT being involved in defense projects
To unravel the complex knot of property relations between LMT and “Tet”, formerly known as “Lattelecom”, the state. been trying for decades.
Both are directly or indirectly owned by two owners – the Latvian state and the Scandinavian company “Telia Company“. In the case of “Tet”, the state owns 51% of the capital shares. On the other hand, the concern “Tet” owns 23% of LMT shares, which significantly changes the balance of power of the owners in LMT.
“Telia” will be able to decide which projects LMT can get involved in and which ones it can’t. And he rejects only the projects of the defense industry.
A week ago, the National Security Commission of the Saeima strongly criticized the fact that the co-owner of LMT “Telia” did not allow LMT to implement several nationally important defense projects.
“Regardless of the investments, in the end there is a council, in which four are Swedish representatives, three – Latvian.
In order to develop something, it is necessary to get support. And this support has not been available in some cases. [..] This is what recently appeared, air defense – we would have the opportunity in one project, for example, to do part of the repair of air defense equipment here in Latvia, which was not supported,” said the chairman of the National Security Commission of the Saeima , Ainars Latkovskis (“Jaunā Vienotība”), presented to the program .
Swedish shareholders have blocked several defense projects designed by LMT in several tens of millions.
“Telia” does not comment on the allegations
The vigilance of the Vikings can be explained by the desire to work in the usual field of communication and a reluctance to take additional risks.
“Here there are obvious conceptual strategic differences between Telia Company and the Latvian owners. Since the Latvian side believes that LMT should be a center of gravity for various tactics both in the military field and also in the civil sphere,” said LMT president Juris Binde.
The company “Telia” does not comment on the allegations. In addition to its representatives in the LMT council.
Instead, a general statement was sent to the program: “Telia, as co-owner of Tet and LMT companies in Latvia, is fully committed to providing access to private and public customers, providing including the defense department and its agencies, access to more. stable, secure and modern communication networks and services.
The representatives of the Swedish government, who did not answer the questions sent to “De facto”, were not able or willing to influence the situation either.
Although Latvian officials have drawn attention to it many times. Including Defense Minister Andris Spruds (“Progressives”) during his recent visit to Sweden at the beginning of October. “I have been in Sweden several times. I also spoke about this issue. In general, of course, Sweden is interested in mutual cooperation. It should be remembered that Swedish soldiers who coming here since the beginning of the year. I think it is a good additional basis so that we do not only talk about military cooperation, economic cooperation, but including work in the military industry,” said Spruds.
The property rights of “Tet” and LMT have not been resolved for years
At home, the company “Telia” is not doing so well. It has been in hard mode for several years. This year’s plan is to lay off 3,000 employees and reduce costs by more than 200 million euros.
In contrast, the Latvian market provides stable profits for the Swedes.
In the previous negotiations with the Latvian government, “Telia” has wanted to gain more influence in LMT, without weakening it.
In 2007, Latvia was close to selling “Tet” shares of the former “Lattelecom” to the company’s own employees, and LMT was sold to the Scandinavians.
Ten years later, the plan to combine LMT and “Tet” seemed reasonable, proposed by the recruitment consultants KPMG. At that time, the government decided politically – leave separate companies.
The idea of unification is alive again, how to do it – there is no clarity
Now the idea of union is alive again.
“It seems to me that it is important not to drag things out. Here, as they say in the country, like a hen preparing to hatch, we have been debating for many years – one way or another.
We are running late and obviously from our previous saga, one of the companies has also lost value. It is not a matter of one or two million, it is a matter of tens of millions. In fact, a situation has developed in the market that the two companies can be combined – without a doubt. There is no doubt about it,” said Finance Minister Arvils Asheraden (“New Unity”).
It would be important to list this new company on the stock exchange, Asheraden said.
However, there is no clear answer to the question of how these state-owned giants will be united. As an option, one company has the opportunity to buy the sounds of another.
The price for each could be around five hundred million euros.
“Our vision is for a better merger – “Tet” buys LMT. Next, of course, it is necessary to work carefully and thoughtfully on this merger of companies. Because there is no doubt that The most valuable resource of both companies is the employees, especially the engineers,” said the chairman of the board of “Tet” Uldis Tatarčuks.
The president of LMT, Juris Binde, does not insist that it could be the other way around, LMT is buying “Tet”, saying that financial resources would be available for this.
Both companies are interested in merging directly in the telecommunications sector
The two companies show interest in the merger especially in the telecommunications sector, not in all types of business.
For example, the head of “Tet” allows the construction company “Citrus Solution” to be sold separately.
If the story was about a union, the Competition Council (KP) would have to assess it. The Chairman of the Competition Council, Juris Gaiķis, sees potential risks if the combined company becomes large and loses interest in innovation and competition in the market.
“As a result, the consumer could be at risk in the end – with higher prices,” said Gaiķis.
The former prime minister, the opposition member of the Saeima, Māris Kučinskis, says that the merger plan of LMT and “Tet” is dangerous, which would lead to equal ownership shares of the state and “Telia” in “Latvijas Mobilajā telefona” ( “Linked list”). In this situation, two or three years of stagnation could occur in companies, but the Vikings would continue to stop LMT weapons projects.
“My biggest proof is that we, the Latvian state, must buy back from Telia [abi] companies.” Kučinskis said. “Furthermore, with one caveat that budget money is not needed either. It’s borrowing that pays back.”
But for now, any of the possible options are shrouded in mystery. “I hope that the responsible ministers and the government understand what they are doing, because some quick moves, unplanned moves can lead to us losing control as a state in these companies,” added he pressure on the former Minister of the Economy, a challenging member of the Saeima Jānis Wittenbergs (National Association).
Negotiations with Scandinavian shareholders are still ongoing.
However, for the most part, the options for putting it on paper are clear. A union position was not rejected. As the Minister of Economy Viktors Valainis (Green and Farmers Union) said “De facto”, the strategic goal of the negotiations is to achieve the majority of the state in both companies.
LMT or “Tet” opinion was not asked in this process. Instead, advice is provided by Ernst & Young as well as Oaklin Consulting. The minister does not say how much was paid to these companies.
2024-10-20 17:32:00
#idea #combining #LMT #Tet #revived
