Sweden’s TeliaSonera has upped its stake in Lithuanian operator Teo LT to 76.16% and will launch a voluntary takeover bid for the remaining shares.
TeliaSonera , which currently has a 68.29% in Teo, said in a statement it will pay a total cash…
Sweden’s TeliaSonera has upped its stake in Lithuanian operator Teo LT to 76.16% and will launch a voluntary takeover bid for the remaining shares.
TeliaSonera , which currently has a 68.29% in Teo, said in a statement it will pay a total cash consideration of €38.9m to acquire East Capital’s 7.87% stake in a deal it expects will close on 10 May.
The Swedish telco said it will invite all other Teo shareholders to participate in a voluntary takeover bid for the remaining shares as soon as it gets the necessary approvals.
TeliaSonera intends to offer €0.637 per share in cash for the remaining shares – a total of about €118m. The company said the takeover bid reflects a 5.3% premium on the shares’ closing price on 7 May. The bid is not conditional and has no minimum threshold for shares tendered.
TeliaSonera CFO and executive vice president Per-Arne Blomquist said the stake increase forms part of the company’s strategy to increase its ownership of core assets.
“Following our agreement to acquire East Capital’s stake in TEO LT, we have also decided to give the same opportunity to all shareholders, Blomquist said. “If they find our takeover bid attractive, all shareholders will be able to sell their shares at the same price as East Capital received, but we intend to keep the company listed as long as there is a reasonable free float.”
