TeliaSonera to Buy Regional Operators

TeliaSonera has announced offers to buy out the shareholders in two regional telecoms operators - Lithuania based TEO LT and Estonia based Eesti Telekom.

The company is offering SEK 1.56 billion (US$222 million) for the outstanding 40% of TEO LT and SEK 3.3 billion (US$468.4 million) for the 40% outstanding in Eesti Telekom.

Eesti Telekom operates Estonia's only IP based TV service and also has investments in cable TV services, while Lithuania's TEO LT has IPTV and DTT interests.

The offers are not conditional and have no minimum threshold of shares acquired.

Beyond the usual comments about synergies, the company did not give any specific reason for the decision to buy out the other shareholders.

Posted to the site on 24th August 2009