London-based investor Cinven remains interested in the privatisation of Telekom Slovenije, in spite of yesterday’s rejection of its binding offer by Slovenian Sovereign Holding (SDH).
Cinven submitted its bid on 20 May but, after this was accepted…
London-based investor Cinven remains interested in the privatisation of Telekom Slovenije, in spite of yesterday’s rejection of its binding offer by Slovenian Sovereign Holding (SDH).
Cinven submitted its bid on 20 May but, after this was accepted by SDH’s board, it subsequently requested an amendment guaranteeing the disposal of Telekom Slovenije’s Macedonian business.
The sale of One to Telekom Austria was agreed last October, with an expected Q1 closing date. Because regulators have yet to approve that deal, Cinven wanted to stipulate that its offer for Telekom Slovenije was contingent on the completion of the One disposal.
“SDH estimates that such additional conditions would represent too great a risk for the consortium of sellers and could lead to an unjustified reduction in the purchase price,” the state holding company said in a statement.
It is advised by Citigroup.
Cinven’s reiteration of its interest suggests it will re-evaluate the situation in the coming weeks, once the outcome of the One sale is clarified.
Cinven had offered a total of €130 per share, which would value the telco at €850m, with the final €20 per share subject to conditions. Telekom Slovenije’s stock was trading at €89.95 today, down 3.95% following the rejection of Cinven’s offer. Over the past year, the operator’s shares have fallen 39%.
Cinven is the only bidder in the privatisation process.
