Swedish telco Telia Company has edged closer to an exit from Latvia’s telecoms market after agreeing a deal to sell its stake in fixed network operator Tet and mobile network operator LMT.

Telia noted that it has signed a Memorandum of Understanding (MoU) to sell its ownership in the units to the Latvian state, Latvenergo, and LVRTC.

The company has a 49 percent stake in Tet and 60.3 percent ownership in LMT.

Financial terms of the planned sale were not disclosed.

However, Telia did note that the parties aim to sign a final agreement by the end of the year, ahead of closing the deal in H1 2026.

“We are pleased to have reached a common view on the best way forward for these great Latvian companies. We have agreed to proceed towards the intended transaction, where our offer to divest our shares reflects a fair market value of Tet and LMT,” said Patrik Hofbauer, Telia Company president and CEO.

“The complex holding structure of Tet and LMT has slowed value creation. This MoU is therefore a milestone for us and for Tet and LMT, who will now have the possibility to develop further under a new ownership model, in turn benefiting their customers and all stakeholders.”

Telia bids for Bredband2

Separately this week, Telia has made an offer to buy Swedish broadband company Bredband2 for SEK3.25 per share, a deal worth SEK3.1 billion ($320 million).

Bredband2 serves approximately 500,000 broadband customers in Sweden.

“We see an opportunity for a collaboration that strengthens both Telia and Bredband2 while creating value for our respective customers and shareholders. The offer is also in line with Telia’s strategy to focus on what we do best – delivering world-class connectivity and communication services that millions of customers rely on every day,” said Hofbauer.

Telia noted that the five largest shareholders at Bredband2, which represent 50.2 percent of the outstanding shares, planned to accept the offer made by the company.