Cinven has told Slovenian Sovereign Holdings (SDH) that it is no longer interested in acquiring Telekom Slovenije.
The London-based private equity house was the only bidder and Slovenia has subsequently ended the privatisation process.
SDH rejected…
Cinven has told Slovenian Sovereign Holdings (SDH) that it is no longer interested in acquiring Telekom Slovenije.
The London-based private equity house was the only bidder and Slovenia has subsequently ended the privatisation process.
SDH rejected an offer from Cinven for Telekom Slovenije in June as the PE firm wanted any acquisition to be contingent on the successful disposal of the incumbent’s Macedonian unit One. That sale received a key competition approval in early July, opening the door for a new approach from Cinven, but the firm today said it is no longer interested.
In a statement Cinven said: “Our decision not to proceed has been taken following a detailed review of our investment case, in light of recent adverse developments in the regulatory environment and telecoms market.”
SDH, which has been advised by Citigroup, said that Cinven had noted a number of developments in the market since it lodged its last bid in June which meant a transaction was “no longer economically feasible”.
The firm cited recent unspecified measures taken by local telecoms regulator AKOS which were not investment-friendly for Telekom Slovenije, EU reforms to roaming which would be expected to have a negative impact on the operator’s results and the increased cost of financing.
SDH also said Cinven referred to “a highly uncertain business environment in which Telekom Slovenije operates”. SDH said this highlighted Slovenia’s complex political environment and public opposition to the privatisation.
SDH confirmed the sale process was now closed, but said it would examine other “possibilities regarding the further steps for the managing of assets in Telekom Slovenije”.
