Consultants, Telia support Lattelecom, LMT merger

Friday 11 August 2017 | 16:58 CET | News

KPMG Baltics has issued a study on the proposed merger of Latvian fixed operator Lattelecom and the mobile operator LMT, reports Db.lv. The government commissioned the study to help develop its strategy as a shareholder in the operators, alongside Telia. 

The study looks at eight main scenarios on the issue. In the case of a merger, the consulting company proposed the following shareholder structure: Telia and the state would own 30-40 percent each and a 30 percent stake would be sold to investors over the stock exchange. 

The authors of the study consider that if the operators continue to work separately, the risk increases that other market players would create an integrated operator that would take market share from Lattelecom and LMT.

The Latvan mobile market contracted by 4.3 percent in the period 2010-2015, slightly more than the 3.5 percent decrease across Europe.

Telia Company has issued a statement supporting the merger. The company abstains from comment on the study before receiving more detailed information and proposals from the government.

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