Telia Company is shifting its strategic focus by divesting from Latvia while doubling down on the Swedish market. The company announced plans to sell its entire stake in Latvia’s major telecom firms, Tet and LMT, while making a substantial acquisition offer for Sweden’s broadband provider Bredband2.
Telia has signed a memorandum of understanding with the Republic of Latvia, Latvenergo, and LVRTC to sell its 49% share in Tet and 60.3% in LMT. Though financial details remain under wraps, Telia says both sides agreed the proposed price reflects a fair market value. The deal is expected to be finalized in the first half of next year, with no regulatory hurdles anticipated due to minimal market disruption.
Telia CEO Patrik Hofbauer emphasized that simplifying the ownership structure of Tet and LMT could unlock greater value for the companies and their customers. While Latvian operations showed growth in Q2—service revenue rose 7.1% and adjusted EBITDA grew 9.6%—they represent a small fraction of Telia’s overall business.
In contrast, Telia is actively expanding domestically. The company recently offered SEK3.25 per share for Bredband2, valuing the deal at approximately SEK3.1 billion ($321 million). This represents a 35% premium over the firm’s previous trading price. Bredband2’s board endorsed the bid, citing potential synergies and enhanced market opportunities.
These moves are part of Telia’s broader transformation strategy. The company recently completed its “Change” program, which included slashing 3,000 jobs and selling its TV and media assets for $600 million. Despite a slight dip in year-over-year revenue, Telia posted strong earnings in the last quarter, with adjusted EBITDA rising 6.2% thanks to cost-cutting.
With divestments behind it and domestic expansion underway, Telia appears focused on building a leaner and more targeted business.