Roundup: Leading mobile operator in Lithuania to be sold to Providence Equity Partners

Bite Group, one of the leading mobile operators in Lithuania and Latvia, will be sold to Providence Equity Partners, a global private equity firm, for undisclosed value, according to sources of Bite here on Thursday.

According to a press release from Bite Group, Mid Europa Partners, the private equity firm with investment in central and eastern Europe and Turkey that owns Bite, has agreed to the deal with Providence Equity Partners.

Relevant parties have not disclosed the value of the deal, which is expected to be completed in the first quarter of 2016.

According to Lithuanian business news website vz.lt, in 2007, Mid Europa Partners bought Bite Group from TDC, a Danish mobile operator, for around 450 million euros(493.21 million U.S. dollars).

Zana Jakeviciene, the head of corporate affairs and public relations of Bite Lietuva, the Lithuanian arm of the group, told vz.lt the company so far declines to give more comments.

According to the press release from Mid Europa Partners, Goldman Sachs was an exclusive financial adviser.

IMPROVED RESULTS

The Baltic company, which is the second largest in Lithuania and the third in Latvia, has recently improved its financial results. Just before the acquisition, Bite Lietuva, its Lithuanian arm, surpassed Omnitel, the main competitor in the market, to become the second largest mobile operator in the country in terms of sales. In the third quarter, Bite Lietuva's sales grew to 34.7 million euros, or up by 12 percent, compared to the same quarter last year.

"Bite has grown considerably under our ownership, while the group has invested significantly in nationwide roll-outs of 3G and LTE networks," Michelle Capiod, the partner of Mid Europa said in the press release.

The improved financial results led to renewed rumors that company had been prepared to the sale. During 2012-2014, there had been several failed attempts to sell Bite, and analysts said the weak financial performance was to blame.

The new owner of the company promises to continue with investments into the mobile company.

"We bring with us our considerable experience supporting the growth of media and communications companies in other markets," said Karim Tabet, Managing Director at Providence.

The private equity firm, which has 45 billion U.S. dollars in assets, focuses on investments into media, communication, education and information businesses. The company has invested globally into 140 companies since its establishment in 1989.

ACTIVITY AMONG TELCOS

The sale of Bite Group, is among one of the most influential events in the telecommunication industry in the Baltic country in three months. In October, Lithuania's integrated telecommunications, IT and TV services provider Teo announced its acquisition of mobile operator Omnitel.

The deal, which is worth 220 million euros, is said to be the largest in Lithuania in 2015.

For Lithuanian market, the Bite Group deal marks the consolidation of forces of the biggest players in the country's telecommunication market. Endit