Government Acknowledges and Does Not Object to LVRTC and Latvenergo Initiative to Approach Telia Company Regarding Acquisition of Tet and LMT Shares

On Tuesday, July 15, the Cabinet of Ministers took note of and did not object to the initiative by the state-owned companies Latvenergo and the Latvian State Radio and Television Centre (LVRTC) to approach Telia Company regarding a potential acquisition of its shares in Tet and LMT.

“This is a story with a long history that is now gaining new momentum. Our goal is to make these companies competitive in exports under conditions beneficial to the state. Tet and LMT have performed very well, but their historic structure has limited the full potential of industry synergies,” said Minister of Economics Viktors Valainis.

Last autumn, LVRTC expressed its readiness to invest in the development of the information and communication technology (ICT) sector. Several months ago, upon identifying a market opportunity, LVRTC informed its shareholder of interest in participating in a potential transaction to acquire Telia Company’s shares in Tet and LMT. Latvenergo, another state-owned company, has expressed a similar initiative.

Both Latvenergo and LVRTC, in line with their business strategies, see significant opportunities in such participation, recognizing the potential synergies between industries as well as new avenues for development.

Currently, LVRTC provides a range of critical ICT services for the state, including the hosting of more than half of the country’s mission-critical information systems, cybersecurity solutions, and shared infrastructure for electronic communications operators.

“We see that modern technologies demand continuous infrastructure development and the ability to make innovation a way of life. Without that, it is not possible to meaningfully implement artificial intelligence, ensure communications and data transmission solutions that meet today’s security requirements, or develop related innovations,” said LVRTC Chairman of the Board Ģirts Ozols during a media briefing.

SIA Tet and SIA LMT are strategically important companies for the state, with infrastructure and know-how that should be leveraged to support national development, improve organizational efficiency, and enhance quality of life for citizens.

“Our talented team and employee expertise are among the company’s greatest assets. Both SIA Tet and SIA LMT—founded 33 years ago with LVRTC’s involvement—bring together bright, technologically skilled minds. Just like LVRTC, these companies have long-serving employees who devote their knowledge and creativity to advancing the application of technology,” emphasized Ģirts Ozols.

LVRTC sees this as an opportunity to strengthen the company’s competitiveness and to enable broader development and export opportunities aligned with national interests.

The involved parties will carry out a due diligence process and other preparatory steps to agree on the potential transaction details. As the process unfolds, the public will be kept informed about developments regarding the possible deal.