Telia Exits Latvian Market, Makes Bid for Bredband2

Sweden-based operator Telia signed a memorandum of understanding with the Latvian state, Latvenergo, and LVRTC to sell its 60.3% stake in LMT and 49% holding in Tet. Simultaneously, it has launched a SEK3.1 billion ($320.1 million) takeover offer for Swedish broadband company Bredband2.

Expected financial terms for the sale of Latvian assets were not disclosed, and a final agreement is expected to be signed by the end of the year. The deals are expected to close in the first half of 2026. Telia CEO Patrik Hofbauer said the MoU is a milestone for them and for Tet and LMT, which will now have the opportunity to develop further under a new ownership model, thereby benefiting their customers and all stakeholders.

Shortly after announcing its Latvia plan, Telia launched an offer to buy Bredband2 for SEK3.25 per share, a deal worth SEK3.1 billion. In the offer document, Telia noted that the five largest shareholders at Bredband2, representing more than 50% of the outstanding shares, planned to accept. The target company’s board has also backed it.

Hofbauer said bringing together Bredband2’s offering with its own would provide strategic and operational advantages, and the combined business would be well-positioned to deliver a stronger and more competitive offering to consumers and businesses throughout Sweden. The deals were announced ahead of its H1 results, where it booked revenue of SEK39.8 billion, up 2.2% year-on-year. Net profit was SEK2.9 billion, down from SEK5.6 billion in H1 2024. However, Telia noted the comparison period included a gain from selling its business in Denmark.