The Slovenian government has received a lone binding bid for its 72.75% stake in Telekom Slovenije.
Slovenian Sovereign Holding (SDH), acting on the government’s behalf, made the announcement following the bidding deadline, but did not reveal the…
The Slovenian government has received a lone binding bid for its 72.75% stake in Telekom Slovenije.
Slovenian Sovereign Holding (SDH), acting on the government’s behalf, made the announcement following the bidding deadline, but did not reveal the bidder or the amount offered.
However, it is understood that UK-based private equity firm Cinven submitted the bid, offering about €110 per share.
Telekom Slovenije shares were down 0.85% on the local bourse at closing yesterday to €128 each.
In February, Cinven confirmed its interest in buying a majority stake in the Slovenian incumbent, with principal Thomas Railhac saying it has good infrastructure and staff and is well-placed to become a “Slovenian champion”. The firm has already met with relevant trade unions to outline its planned strategy for the business.
Deutsche Telekom, which has assets in other parts of Central and Eastern Europe, including neighbouring Croatia and Slovakia, was considered by many to be the favoured buyer, although it never confirmed an interest in acquiring a stake.
A spokesperson for Deutsche Telekom declined to comment.
Last Friday, Cinven and the German incumbent were expected to submit below-market-value bids of €110 to €115 per share.
Staso Stanovnik, head of research and chief economist at Alta Invest in Ljubljana, told TelecomFinance that such offers, valuing the telco at about 5.5x EBITDA, would be a “disappointment” to the government. In his view, the telco should command bids of at least 6.5x EBITDA (or €140 per share).
Citigroup is advising the government on the privatisation.
