TeliaSonera Offers to Buy Out Remaining Shareholders in Lithuanian Subsidiary
Published on: 7th May 2012
Note -- this news article is more than a year old.
TeliaSonera has launched a bid for full ownership of its Lithuanian subsidiary, TEO LT. The company said that it has secured an agreement to raise its holding in the company to 76.16 percent, and will invite the other shareholders to participate in a voluntary takeover bid for the remaining outstanding shares.
TeliaSonera is paying EUR 38.9 million for a 7.87% stake in the company currently owned by East Capital - raising its holding in the company from 68.29% to 76.16%.
Once that transaction is completed, the company will then offer approximately EUR 118 million for the outstanding shares at a price that represents a premium of 5.3 percent over the shareprice yesterday evening.
The takeover bid is not conditional and has no minimum threshold of shares tendered.
"With this acquisition we continue to execute on our strategy to increase the ownership in our core holdings. Following our agreement to acquire East Capital's stake in TEO LT, we have also decided to give the same opportunity to all shareholders. 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," said Per-Arne Blomquist, Executive Vice President and CFO of TeliaSonera.