Teo takes control of Omnitel

Lithuanian telecom operator Teo has acquired 100% control of mobile operator Omnitel from TeliaSonera, the parent of both companies.

Teo and Omnitel are launching a new joint telecommunications business in Lithuania.

Teo acquired the shares in Omnitel for €220 million on a cash and debt free basis. SEB Bank and Danske Bank provided Teo with a loan of €150 million in equal instalments of €75 million. The structure of the shareholders of Teo will remain unchanged. TeliaSonera will continue to own 88.15%, while other shareholders will hold 11.85% of Teo and, indirectly, of Omnitel.

TeliaSonera revealed that it planned to combine the two companies last October to address the demand for converged fixed and mobile offerings. The company named a new combined management team for its Lithuanian unit in December.