TeliaSonera to Merge Lithuanian Operations
06 October 2015 - 6:04PM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Scandinavian telecom operator TeliaSonera AB
(TLSN.SK) said Tuesday it will merge its two Lithuanian
subsidiaries, strengthening its Baltic operations as part of a new
strategic focus.
Fixed line operator TEO LT AB (TEO1L.LV), in which TeliaSonera
owns an 88.2% stake, will buy Telia's wholly-owned mobile operator
Omnitel for 220 million euros ($246 million), in a deal expected to
generate annual savings of around EUR10 million.
"Consumers no longer make a distinction between fixed and mobile
services and the demand for converged offerings are steadily
increasing," Teo Chairman Robert Andersson said. The combination
will strengthen its market position through clear synergies and
enhanced customer proposition, he said.
Teo will use external financing for the acquisition and
TeliaSonera's ownership in Teo will remain at 88.15% following the
deal.
The acquisition is expected to be finalized in the first quarter
of 2016 at the latest.
TeliaSonera has recently made a strategic shift away from its
troubled Eurasian operations to focus more on its Swedish and
European businesses. It has combined its commercial and technology
divisions and is currently evaluating its Danish business after the
European Commission blocked plans to merge with Telenor's Danish
operation.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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(END) Dow Jones Newswires
October 06, 2015 02:49 ET (06:49 GMT)
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