The company's shareholders would on April 26 be asked to approve the preparation of respective terms of reorganization, Teo LT said in a stock exchange filing on April 1st.
"The board adopted a significant decision in the history of Teo LT group...While operating as separate legal entities for the past half year, the group's companies have been generating common decisions that maximize the benefits for our customers, prompt synergies and innovations," Teo LT board said in comments.
Teo LT shareholders will also vote on a proposal to pay out 5.826 million euros, or 0.01 euros per share, as dividend for 2015. According to the board, the proposed level of dividend payout has been lowered, compared with the dividend paid for 2014, given the demand for long-term strategic investment, loan repayment terms and overall leverage levels following the acquisition of Omnitel.
Teo LT acquired Omnitel from TeliaSonera for 220 million euros early in January. SEB Bankas and Danske Bank then lent 150 million euros to finance the deal.
