Wednesday, December 13, 2006

Lattelecom, LMT valuations leaked

dBaiba is back! A past nemesis :) (a journalistic competitor, actually), Baiba Rulle of Diena, has been leaked the audit company valuations of Latvian Mobile Telephone (LMT) and Lattelecom. Lattelecom has been appraised at around LVL 260 million (for the whole company) and LMT at LVL 668 million. This is a median figure because both appraisers (Sweden's Carnegie for half-mother TeliaSonera and Ernst & Young Baltics for the Latvian government (the slightly bigger half-mother). These figures are derived from two minimum-maximum type appraisals, which must be seen as educated guesses, since neither company trades on a stock exchange or any other market.
From these figures, in turn, one can derive the approximate value of the assets to be swapped when TeliaSonera gives up its 49 % of Lattelecom (minus the 23% of LMT Lattelecom holds) for the remaining 23 % of LMT). So it now looks like some kind of deal can be done during the first half of 2007.
Baiba notes in her story that Prime Minister Aigars Kalvitis, asked to comment, was angry (pissed off, an American would say) that the figures had leaked. Good for Baiba!! She has come back with full reporting powers after having been away from Diena, as I understand, on two closely spaced maternal leaves. Since I am not with my old newspaper anymore and my new employer and I are still figuring out what to do with each other :), I won't be berated for Baiba's scoop, but I do envy it :).


Jah said...

To me it rather looks like "unintentional" Swedish leak than result of heroic journalist "digging".

Anonymous said...

Why do government is so worried about going the evaluation public? Do they have smth to hide?

Tedijs said...

IMHO these are weird valuations!
Lattelecom owns two magic wires at every house in Latvia and quickly moves towards ‘triple play’.
Also there will be switch from analogue to digital TV broadcasting and average costumer will have to acquire additional hardware for their TV boxes. That gives Lattelecom opportunity to brake into this market segment with their TV solutions.
Meanwhile LMT has only telephony and rubbish data transfer solutions that will remain rubbish in foreseeable future. Furthermore they are close to their maximum numbers of possible clients in Latvia. Competition is growing and because everything fluctuates in this world, so will their market share.
I really doubt that LMT potential for profit is so much higher compared to Lattelecom!