The government of Slovenia has once again put off making a decision on the future of its 72.75% stake in national fixed and mobile operator Telekom Slovenije. UK-based private equity firm Cinven has offered EUR110 (USD123) per share for the state’s majority holding, while further payments could take the final purchase price up to EUR130 per share, though this is dependent on future performance and the outcome of ongoing litigation involving Telekom. Cinven had set yesterday (10 June) as the deadline for a decision, but this has now been pushed back to midnight on 12 June.
A report from local newspaper Finance suggests that the government is set to accept Cinven’s offer and the delay is purely because the parties are working out the finer details of the agreement, in particular concerning Telekom Slovenije’s wholly owned subsidiary in Macedonia, ONE, which is to be merged with Telekom Austria’s local unit Vip Operator.
Separately, a report from Slovenian weekly Mladina is suggesting that Telekom is being sold for around half its true value. While the current Cinven offer values the government’s interest at between EUR715 million and EUR845 million, a report commissioned by an unknown party which was considering lodging a bid for the telco found that the operator is actually worth up to EUR2 billion.