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EBRD invests US$ 49.6 million in support of Lithuanian telecom deal
In support of the first significant initial public offering in Lithuania, the European Bank for Reconstruction and Development (EBRD) has invested US$ 49.6 million (€52.2 million) to buy a 7.7 per cent stake in Lietuvos Telekomas (LT), Lithuania’s incumbent fixed-line operator.
The Government of Lithuania was able to sell 25 per cent of LT (original stake was 35 per cent) on both the London and Vilnius stock markets. The public offering is an essential element of the Government's privatisation programme. Moreover, it adds significant liquidity to the Lithuanian equity market, and improves Lithuania's exposure to international capital markets.
Izzet Güney, Director of the EBRD’s Telecommunications, Informatics and Media Team, said: "The Government believed in the quality of the company’s assets despite the tough market conditions for telecommunications, media and technology stocks. This demonstrates a strong commitment to its privatisation efforts. LT is a first-class company with strong strategic operators, and we are pleased to support its flotation and offer the company our long-term support."
LT was privatised in June 1998 following an international tender for a 60 per cent stake. The strategic investors, Telia and Sonera, have since successfully restructured the company and undertaken a significant investment programme to modernise the network and offer a wider range of services.
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