Latvia courts 23 investors for Telia's LMT, Tet stakes

Latvia is in discussions with 23 potential investors to acquire Telia’s stakes in local telecom operators LMT and Tet. The transaction marks the end of a decades-old cross-shareholding structure between the Swedish telecom giant and the Latvian state.

This represents the country's largest corporate deal in more than 15 years. Unwinding the complex cross-shareholding will eliminate a legacy ownership model that has long dictated the strategic direction of the national carriers. The resulting transaction is poised to reshape Latvia's telecommunications sector and trigger one of the largest digital infrastructure investments seen in the broader Baltic region.

Valuations for both LMT and Tet are currently being finalized ahead of the submission of binding offers, according to Economics Minister Viktors Valainis. While the identities of the 23 prospective buyers remain confidential during the due diligence phase, the scale of the interest signals strong appetite for Baltic digital assets. Crucially, all candidates are undergoing rigorous screening by Latvia's security services before they can access commercially sensitive information.

"The process must be transparent and firmly aligned with Latvia's national interests," Prime Minister Andris Kulbergs said. "Latvia is seeking an investor capable of bringing international expertise and supporting future technology development."

The government views the separation from Telia as a necessary step to modernize both operators for the open market. Riga intends to leverage updated business plans and stricter corporate governance standards to transform LMT and Tet into primary drivers of innovation, exports, and broader economic growth. This pivot aims to attract capital specifically earmarked for future technology development rather than mere dividend extraction.

"The level of international interest would allow Latvia to choose a partner with the strongest long-term strategic vision," Valainis said. This breadth of options gives the state significant negotiating leverage to dictate terms that prioritize national economic goals over short-term financial returns.

J.P. Morgan is serving as the lead financial advisor to the Latvian government on the transaction. To manage the complexity of the dual acquisition, the state has assembled a wide-ranging advisory panel. This includes A&O Shearman and Walless for legal counsel, Deloitte for financial support, and Tegos alongside Hardiman Telecommunications for technical guidance.