Twelve confirmed bidders for Telekom Slovenije

16 Oct 2007

The Slovenian government has received twelve non-binding bids for a 49.13% stake in the country’s incumbent telco Telekom Slovenije, and will select companies to advance to a second bidding round by the end of this month, the Economy Ministry said in a statement. The bidders are: Croatia’s T-Hrvatski Telekom (T-HT, majority owned by Deutsche Telekom); Magyar Telekom of Hungary (also controlled by the German incumbent); UAE-based holding company Oger Telecom (parent of Turk Telekom amongst others); UK-based fund Providence Equity; Slovenian retailer EngroTus (part of a group owning Tus Telekom [Voljatel] and Tus Mobil); Macquarie Bank of Australia; Luxembourg-US buyout fund CEP III (operated by equity house The Carlyle Group); UK-German consortium Bain Capital & Axos Capital, joined by Slovenia’s BT Globalne; international investment group Apax Partners Worldwide; Iceland’s Skipti (parent of incumbent telco Simmin); investment firm Babcock & Brown of the UK; and the US’s SAC Private Capital Group.

Three other companies that had previously applied did not place a bid: Sistema (owner of largest Russian cellco MTS); Luxembourg-registered Skywheeler (a unit of international private equity house Permira); and Telecom Egypt. The Republic of Slovenia directly owns 62.5% of Telekom Slovenije. Funds and others (including brokerage firms and investment companies) hold around 27%, whilst around 10.5% is held by private investors. Taking into consideration the state funds KAD and SOD, the government indirectly controls around 74% of Telekom.