UK-based private equity firm Cinven has confirmed it made a binding bid for the Slovenian government’s majority stake in Telekom Slovenije.
As previously reported, Cinven was the only one to submit a binding bid for the 72.75% stake by the 13 April…
UK-based private equity firm Cinven has confirmed it made a binding bid for the Slovenian government’s majority stake in Telekom Slovenije.
As previously reported, Cinven was the only one to submit a binding bid for the 72.75% stake by the 13 April deadline. The firm said the rules of the privatisation process prevent it from revealing its offer price or valuation of the telco, but is understood that the firm offered about €110 per share. At the time of writing, Telekom Slovenije’s shares were trading at €120 each on the local bourse, giving it a market capitalisation of €784.26m.
Setting out its planned strategy for the Ljubljana-based telco today, Cinven said it aims to “restore the company’s position as a Slovenian champion”.
“Cinven’s intentions for Telekom Slovenije are to invest significantly to upgrade the network, to stop the company’s revenue decline, stabilise and then grow revenues sustainable for the long term.”
In terms of network development, the firm plans to “substantially” boost investment in fibre optic networks to improve the availability of high-speed broadband. Increasing 4G mobile coverage to 90% of the population is another key aim.
Cinven said it would also invest in sales channels and customer services to reverse the decline in market share, optimise processes so products and services can be improved, and promote the company as an independent Slovenian business.
Partner Nicolas Paulmier commented: “Telekom Slovenije is a company that Cinven can help prosper and make more competitive in the future … We believe we can support Slovenia’s competitiveness in the region and in Europe, and we can make a long-term success story out of Telekom Slovenije that will showcase the attractiveness of Slovenia to global investors.”
Acknowledging that the incumbent presents a “challenging” investment opportunity, Cinven said it believes its prior experience in the European telecoms sector stands it in good stead.
The firm’s previous European telecoms investments include Dutch cableco Ziggo and French cableco Numericable, which lasted for seven and 10 years respectively before it listed them on local stock markets.
The Slovenian government, advised by Citigroup, is currently reviewing Cinven’s offer.
