UK-based private equity firm Cinven has confirmed it is interested in buying a majority stake in Telekom Slovenije.
Cinven principal Thomas Railhac said the firm believes the Slovenian incumbent has good infrastructure and staff and is well positioned…
UK-based private equity firm Cinven has confirmed it is interested in buying a majority stake in Telekom Slovenije.
Cinven principal Thomas Railhac said the firm believes the Slovenian incumbent has good infrastructure and staff and is well positioned to become a “Slovenian champion”, a spokesperson for the company confirmed.
Cinven would keep Telekom Slovenije as an independent company based in Ljubljana and run by Slovenians, Railhac noted.
The firm will draw on its experience in France and the Netherlands, where it previously invested in cablecos Numericable and Ziggo respectively, he added.
Local newspaper Finance.si sited Cinven partner, Nicolas Paulmier, as saying the firm would initially delist the telco from the local stock market. However, it would be relisted after a restructuring, most likely in a few years’ time, he reportedly added.
German incumbent Deutsche Telekom, which has assets in other parts of the CEE region, is widely considered to be the favoured buyer. In December, local media reported that the German incumbent and Cinven were the sole two suitors remaining.
Previous suitors were said to have included private equity firms Providence, Bain Capital and Apax Partners.
Last week, Slovenian finance ministry state secretary Metod Dragonja told a parliamentary board that the privatisation of the telco may not take place this month as planned as bidders were concerned about several court cases against Telekom Slovenije for alleged abuse of dominant market position.
However, Dragonja stressed that the government and Slovenian Sovereign Holding (SDH), which is coordinating the privatisation of Telekom Slovenije and other state-controlled companies, are doing all they can “to keep the highest possible dynamics of the … process”.
SDH declined to comment on the matter.
The state, which is receiving financial advice from Citigroup on the sale, owns 72.38% of Telekom Slovenije, which has a market capitalisation on the Ljubljana bourse of €954.18m (US$1.09bn). The remaining shares are held by individual shareholders, local and foreign companies, institutional investors, brokerage houses and the company itself.
