Slovenian Sovereign Holding (SSH) has recommended private equity firm Cinven’s offer for 72.75% of Telekom Slovenije, referring the final decision to the government.
The government, meanwhile, has asked SSH to make the final decision, with local press…
Slovenian Sovereign Holding (SSH) has recommended private equity firm Cinven’s offer for 72.75% of Telekom Slovenije, referring the final decision to the government.
The government, meanwhile, has asked SSH to make the final decision, with local press attributing this to differences among the ruling coalition over the lower than expected offer price and the merits of selling to a financial rather than strategic investor.
Sole bidder Cinven has said its offer is valid until 10 June.
Cinven is offering €100 per share plus €15 EUR depending the outcome of current litigation, plus an additional €5 depending on other conditions, according to the local Pop TV. Cinven’s two conditions are ownership of at least 75% of the company, and omitting Macedonian subsidiary One – which it would like to be sold to Telekom Austria – from the deal.
Last month, the firm increased its offer for Telekom Slovenije from €110 to €130 per share in a bid to persuade local authorities to accept it.
The private equity firm’s final offer reportedly consists of an upfront cash payment of €110 per share, an additional payment of €15 per share depending on the outcome of lawsuits facing the operator, and a further €5 per share depending on the company’s performance.
Explaining its bid earlier this year, Cinven said it aimed to “restore the company’s position as a Slovenian champion” by investing in fixed-line and mobile network upgrades, and returning revenue to growth.
The firm’s previous European telecoms investments include Dutch cableco Ziggo and French cableco Numericable, which it subsequently exited via local IPOs.
The government is advised by Citigroup.
