Published: 11.03 Europe/London, April 7, 2011
The proposed merger of Latvia’s two leading cable operators Baltkom and Izzi now looks unlikely to happen. Instead, reports DB, quoting Izzi board chairman Helmuts Kols, Izzi might buy 100% of Baltkom.
Baltkom and Izzi first announced their intention to merge last summer and then agreed on the terms of a deal last November, valid until April 15.
The intention of the deal was to create a company that could compete more effectively with the incumbent telco Lattelecom, which besides being a leading provider of broadband services also operates IPTV and DTT platforms.
Baltkom and Izzi are both long-established companies, having been formed in 1991 and 1994 respectively.
The former is majority (99.92%) owned by New Life Holding AS, while the latter, backed at one time by Telia (TeliaSonera), is owned by European investors.