OREANDA-NEWS. Baltic Telekom (BT), NASDAQ OMX Baltic alternative market First North listed holding company, is interested in acquiring up to 75% stake in the telecommunication and media sector companies in the Baltic, Baltic Telekom CEO Gene Zolotarev said. Ideal targets would be niche companies with at least EUR 3m turnover. The company is planning to spend up to EUR 5m per acquisition in the first year, Zolotarev explained, adding that BT can act as a financial investor, monetizing investments in a five to ten-year horizon.

Last month, BT announced it had appointed Deloitte as investment banking advisor to identify suitable target companies. The company is responsible for the full transaction support, including finding financing sources for acquisitions, Gene Zolotarev added. Deals could be financed by cash, equity or debt, he said without specifying further, as BT's plans “are defined by the availability and accessibility of investments targets”. In telecommunication sector, deal value usually stands at 7x to 8x EBITDA, according to the industry source.

Lithuanian telecommunication companies could be suitable targets, local bankers suggested.

CEO of “Baltnetos Komunikacijos”, Mr. Mindaugas Pranskevicius, commented this information and said that company would listen to Baltic Telekom offer. However, Baltnetos, which reported a turnover of EUR 6.9m in 2013, could be too big a target for Baltic Telekom, he suggested.

BT's only holding now is a 19.5% stake in “Telekom Baltija” with EUR 6m turnover, a private Latvian telecommunications company, operating under the “Triatel” brand. BT could increase this stake, Mr. Zolotarev said without elaborating.