Latvia attracts 23 investors as landmark telecoms deal progresses

The Latvian government says it is in advanced discussions with 23 potential investors as it prepares one of the country’s biggest corporate transactions in more than 15 years – the [...]

The Latvian government says it is in advanced discussions with 23 potential investors as it prepares one of the country’s biggest corporate transactions in more than 15 years – the acquisition of Telia’s stakes in mobile operator LMT and telecoms provider Tet. Economics Minister Viktors Valainis said strong international interest would allow the government to select the investor offering the best long-term strategic vision for Latvia, although the identities of the bidders remain confidential while due diligence continues. Valainis said valuations of both companies are still being finalised before binding offers are submitted.

He added that Latvia’s security services will vet all prospective investors before they are granted access to sensitive commercial information. Prime Minister Andris Kulbergs described the transaction as one of Latvia’s most significant corporate deals in more than a decade, saying the government wanted to ensure it delivered long-term strategic and economic benefits. “The process must be transparent and firmly aligned with Latvia’s national interests,” he said, adding that the government wanted to secure a strategic investor capable of bringing international expertise and supporting future technology development.

The government hopes LMT and Tet can become key drivers of Latvia’s technology sector, exports and economic growth, with updated business plans and strengthened corporate governance already in place. J.P. Morgan is acting as the Latvian government’s financial adviser on the transaction, supported by A&O Shearman, Walless, Deloitte, Tegos and Hardiman Telecommunications. The advisory team is overseeing due diligence, investor selection and the development of a long-term strategy for both companies.

The proposed deal follows Telia’s decision to exit its long-running cross-shareholding with the Latvian state, ending a complex ownership structure that has existed for decades. The transaction is expected to reshape Latvia’s telecommunications sector while potentially creating one of the region’s most significant digital infrastructure investments.