Cinven sketches Telekom Slovenije investment plans

29 Jan 2015

European private equity firm Cinven has said it intends to invest around EUR100 million a year in Telekom Slovenije should it be successful in acquiring a majority stake in the Slovenian operator via the ongoing privatisation process. In an interview with local business news outlet Finance, Cinven partner Nicolas Paulmier said the investment would be used to modernise and expand Telekom’s infrastructure, including the deployment of 4G mobile networks. Paulmier says Cinven’s long-term aim would be to turn Telekom into a successful business before exiting the company via a stock market listing in five-to-ten years.

Cinven’s main rival in the bidding process is thought to be German giant Deutsche Telekom, while interest has also been shown by other private equity firms including Providence. The Slovenian government is looking to offload its 72.58% holding, along with shares held by a number of minority investors, taking the total stake on offer to 75.58%. The much-delayed privatisation had initially been expected to be completed last year and the timing of the sale is still in doubt, with final bids now likely to be taken in March.

Slovenia, Telekom Slovenije (incl. Mobitel)