Latvenergo and LVRTC Sign Memorandum of Understanding with Telia Company on Acquisition of Shares in Tet and LMT

On Thursday, July 17,   “Latvenergo,” “Latvijas Valsts radio un televīzijas centrs” (hereinafter – LVRTC), and Telia Company AB signed a Memorandum of Understanding (MoU) to initiate the acquisition process of Telia’s shares in “Tet” and “Latvijas Mobilais Telefons” (LMT).

The involved parties will carry out a detailed due diligence process and undertake other preparatory steps to assess the feasibility of the transaction. If the deal moves forward, Latvenergo and LVRTC, together with “Publisko aktīvu pārvaldītājs Possessor” and an international financial investor, would gain full control over both telecommunications companies.

To facilitate this, an international financial investor with significant experience in the technology sector is expected to be engaged. The selection of the investor will be carried out through an open tender, with the help of an international advisor whose role will be to propose the best possible transaction structure and financial partner.

A long-term development strategy and business plan for the companies will be developed, with the aim of eventually listing a portion of the state-owned shares on the stock exchange.

“Data technologies are a key element in strengthening Latvenergo’s position as one of the leading energy service providers in the Baltic region. Such opportunities are rare, and we see this as part of a forward-looking strategy. The convergence of the energy and telecommunications sectors is a natural development cycle that we intend to be part of,” emphasized Mārtiņš Čakste, Chairman of the Management Board of Latvenergo.

“LVRTC today is a well-capitalized enterprise – a specialized critical infrastructure company focused on introducing innovative technological solutions and providing services that, for various reasons, are not taken on by private companies. We see expanding our assets in the ICT sector as a strategic way forward. LVRTC is one of the founding shareholders of LMT and currently holds 23% of its shares. Expanding our ICT assets would support our continued development and generate revenues that can be reinvested in strengthening the state. This potential transaction would also undeniably increase the value of our existing LMT shares,” said Ģirts Ozols, Chairman of the Board of LVRTC.

“We are pleased to have reached a shared understanding on the best path forward for these great Latvian companies. We have agreed to proceed with the planned transaction, in which our offer to sell our shares reflects the fair market value of Tet and LMT. The complex shareholder structure of Tet and LMT has so far hindered greater value creation. Signing this MoU marks a significant turning point for us, as well as for Tet and LMT, who will now have the opportunity to grow under a new ownership model, benefiting their customers and all stakeholders,” said Patrik Hofbauer, President and CEO of Telia Company.

Latvenergo and LVRTC are engaging in the process based on commercial principles, taking into account both potential synergies and economic value. If negotiations and due diligence are successful, the transaction could be completed in the first half of 2026.