Telekom Slovenije sale not yet settled

15 Jun 2015

UK-based private equity company Cinven is still to seal a deal to acquire the Slovenian government’s majority stake in Telekom Slovenije. Last week, the state holding company SDH accepted Cinven’s improved bid, which values Telekom at up to EUR850 million (USD957 million), but the fund then requested an amendment to the terms of the sale. While neither party has revealed the details of the proposed amendment, it is thought to concern Telekom’s planned purchase of Slovenian mobile reseller Debitel plus the future of Telekom’s subsidiary in Macedonia, ONE, which is due to merge with rival VIP Operator, though this transaction is still awaiting regulatory approval. Local press reports suggest that Cinven is looking to withhold part of the purchase price until these deals are completed.

Cinven is looking to acquire the government’s 72.75% interest in Telekom Slovenije at a price of between EUR110 and EUR130 per share, depending on factors such as future performance and the outcome of ongoing litigation involving Telekom. It will then be required to make an offer to buy out minority investors at the same purchase price. Telekom is the leading operator by subscribers in Slovenia’s fixed and mobile markets.

Slovenia, Telekom Slovenije (incl. Mobitel)