TeliaSonera merges Lithuanian subsidiaries
TeliaSonera has today revealed that it plans to merge its two Lithuanian subsidiaries, fixed-line operator TEO and mobile player Omnitel.
The company said that TEO will acquire Omnitel for €220 million on a cash and debt free basis, in a bid to strengthen TeliaSonera’s core business across the Nordic and Baltic regions.
Consumers no longer make a distinction between fixed and mobile services and the demand for converged offerings are steadily increasing,” said Robert Andersson, chair of the board at TEO.
“The combination of TEO and Omnitel will create a leading, fully converged telecoms operator and strengthen the market position through clear synergies and enhanced customer proposition.”
TeliaSonera expects the merger to generate annual synergies of approximately €10 million when implemented.
TEO will use external financing for the acquisition which is due to complete by Q1 2016.
In January this year, Omnitel launched LTE-Advanced services in five cities across Lithuania.