OREANDA-NEWS. IT and telecommunications company Teo has signed a loan agreement with SEB Bank and Danske Bank for EUR 150 million long-term loan intended for the acquisition of shares in Omnitel from TeliaSonera. The deal represents one of the largest financing transactions in Lithuania this year.

Teo and Omnitel, both being parts of TeliaSonera Group, are joining their forces in Lithuania and already from next year will offer new joint broadband and mobile communication, Internet, television and IT services. In early October, it was announced that Teo would acquire a 100 per cent stake in Omnitel from its current shareholder TeliaSonera. The total value of the deal amounts to EUR 220 million on a cash and debt free basis.

Teo borrows EUR 150 million in equal instalments of EUR 75 million from SEB Bank and Danske Bank. The financing deal was arranged by SEB Bank. Acquisition of Omnitel is scheduled to be completed early next year, though the exact date is not yet fixed.

"The successful attraction of external financing further strengthens the currently ongoing intensive process of business integration. We have formed a new management team, updated the structures of our units and are preparing for the smooth start of our new business", – K?stutis ?liu?as, CEO of Teo, says.

"The step of Teo to acquire Omnitel is logical and based on global trends, which open up many new opportunities. Therefore, we decided to organize and finance the deal", – Aivaras ?i?elis, Deputy President and Head of Corporate Banking Division of SEB Bank, says.

"We are glad being able to contribute to the implementation of one of the biggest acquisition deals and hope that the financing granted by Danske Bank will help ensure that the process of business integration runs smoothly", – Dinas Petrikas, Head of Corporate Banking Division at Danske Bank, says.

As a result of this deal, the structure of the shareholders of Teo will remain unchanged. Swedish telecommunications company TeliaSonera will continue to own 88.15 per cent of shares, while other shareholders – 11.85 per cent stake in Teo and, indirectly, in Omnitel.