Latvenergo and LVRTC enter into a Memorandum of Understanding with Telia Company on the purchase of Tet and LMT shares
July 18, 2025
On Thursday, 17 July, Latvenergo AS and Latvijas Valsts radio un televīzijas centrs VAS (hereinafter – LVRTC) entered into a Memorandum of Understanding with Telia Company AB, which provides for the commencement of the purchase of the shares of Tet SIA and Latvijas Mobilais Telefons SIA belonging to Telia Company.
The involved parties will carry out due diligence and other preparatory work for the assessment of the feasibility of the transaction. As a result of the potential transaction, Latvenergo and LVRTC, together with Publisko aktīvu pārvaldītājs Possessor SIA, and an international investor, would gain full control in both telecom companies.
The involvement of an international investor with significant experience in the technology sector is planned to achieve this objective. An international consultant will be engaged in the attraction of an investor through an open tender procedure, and will be tasked with proposing the best possible transaction solution and financial investor.
A further strategy and development plan for the companies will be developed, with the aim of the public listing of some of the state-owned shares in the long run.
“Data technology is a central element for the consolidation of the position of Latvenergo as one of the leading providers of energy supply services in the Baltic states. Such opportunities are rare, and we perceive them as part of a bold strategy. Integration of the energy and telecommunications sectors is a natural development cycle that we are getting involved in,” emphasises Mārtiņš Čakste, Chairman of the Management Board of Latvenergo AS.
“Today, LVRTC is a well-capitalised company – a specific critical infrastructure company, which aims to introduce innovative technological solutions and provide services that, for various reasons, are not transferable to merchants. We see the expansion of the assets of the company in the ICT sector as a solution for the implementation of this strategy. LVRTC is one of the founders of LMT and owns 23% of LMT shares. We see that the opportunity to expand the assets of LVRTC in the ICT sector will allow us to grow, providing revenues that we can continue to invest in strengthening our country. The potential transaction would also undoubtedly increase the value of LMT shares already owned by LVRTC,” emphasises Ģirts Ozols, Chairman of the Management Board of LVRTC.
“We are pleased to have reached a common understanding on the best way forward for these great Latvian companies. We have agreed to move forward with the proposed transaction, in which our offer to sell our stake reflects a fair market value of Tet and LMT. The complicated Tet and LMT shareholder structure has delayed the creation of higher corporate value to date. The signing of this Memorandum of Understanding is therefore an important milestone for us, as well as for Tet and LMT, which will now have the opportunity to develop under a new ownership model, bringing benefits to customers and all stakeholders of the companies,” explains Telia Company Chairman and CEO Patrick Hofbauer.
Latvenergo AS and Latvijas Valsts radio un televīzijas centrs VAS engage in transactions on a commercial basis, by assessing both synergies and economic benefits. If the negotiations and due diligence are successful, the transaction could be implemented in the first half of 2026.