Swedish telecommunications giant Telia said it has not yet heard back from the Latvian government about purchasing the company’s stakes in the telecoms companies LMT and Tet, eng.lsm.lv reported on December 19.

"Currently, Telia has not received any information from the Latvian government regarding a potential offer to sell its shares in Tet and LMT. Finding a structural solution for the ownership in these companies has long been overdue. Telia has made it clear that it envisions either a merger of the companies, with Telia becoming a co-owner and equal partner alongside the Latvian government, or, if the terms are right, a divestment of its shares to the state. If any offer does not reflect the fair value of Tet and LMT, Telia would be willing to discuss acquiring the Latvian state's shares. The worst scenario is maintaining the status quo, which could risk eroding value for both shareholders,” said Tobias Gyhlenius, Telia's Head of Group Communications, eng.lsm.lv reported.

This statement suggests that if the Latvian government's offer fails to meet Telia's expectations, the company is prepared to make an offer to buy the state-owned shares in both telecom companies.

The price for the shares remains uncertain, but the Latvian Telecommunications Association estimates it could be at least half a billion euros.

On December 19, Latvian Economy Minister Viktors Valainis confirmed in a press conference that the government intends to buy back the shares of telecom companies Tet and LMT from Telia, eng.lsm.lv reported.

Currently, the Latvian state holds 51% of Tet, with Telia’s subsidiary, Tilts Communications, owning the remaining 49%. In LMT, Telia and its subsidiary Sonera Holding own 49%, while the Latvian state controls 28%. Furthermore, another 23% of LMT's shares are held by Tet.

In other news, as reported by bne IntelliNews, in September, Telia announced plans to lay off 400 employees in Lithuania, citing talent retention as a key factor. Telia Lietuva, which currently employs around 1,900 people, and Telia Global Services Lithuania, with 936 employees, want to see reductions of 200 jobs each. 

These cuts were said to be a part of a broader strategy by the Telia Company Group to eliminate about 3,000 positions this year. The layoffs are partly due to new investments, a focus on talent retention, and efforts to reduce expenses by shifting human-provided services to artificial intelligence, LRT.lt said.