Latvia’s largest telecommunications operators, Tet and LMT, are poised for a change in ownership following a memorandum of understanding signed between Telia Company and a consortium including Latvenergo and LVRTC. The agreement outlines the potential divestment of Telia’s shares in both companies.
According to a company statement released on July 17, 2025, the move reflects a fair market valuation for Tet and LMT. Telia cited the complex ownership structure of the two firms as a hindrance to value creation, suggesting a new ownership model will foster growth and benefit stakeholders.
“We are pleased to have reached a shared view on the best way forward for these two outstanding Latvian companies,” said Telia President and CEO, Patrik Hofbauer. “We have agreed to proceed with the proposed transaction, in which our offer to sell our shares reflects the true market value of Tet and LMT. This Memorandum of Understanding marks a turning point for us as well as for Tet and LMT, who will now have the opportunity to grow under a new ownership model that will benefit their customers and all stakeholders.”
The agreement, which too involves Latvenergo and LVRTC, aims to streamline operations and unlock further potential within the Latvian telecommunications market. Latvian public broadcaster LSM.lv reported on July 18, 2025, that a definitive agreement is expected by the end of 2025, with the transaction anticipated to finalize in the first half of 2026.
LVRTC has already engaged advisors to facilitate the acquisition, as detailed on their website on July 18, 2025, and initiated the necessary preparatory work. This development signals a significant shift in Latvia’s telecommunications landscape, potentially impacting competition and investment in the sector. The move by Telia to divest its Latvian operations aligns with a broader trend of telecom companies reassessing their portfolios and focusing on core markets.
