Telekom Slovenije sale cancelled after Cinven withdraws

5 Aug 2015

The government of Slovenia has cancelled the sale of a controlling stake in the country’s largest telecoms group Telekom Slovenije after the sole bidder, British private equity fund Cinven, withdrew its offer, it was confirmed by state privatisation/holding company SDH yesterday. As reported by Reuters, SDH received notification from Cinven that the bidder no longer wants to pursue negotiations to conclude the sale. SDH added that it will look at options for the 72.75% stake in Telekom, valued at around EUR673 million (USD738.2 million). Meanwhile, Cinven was quoted as saying that it took the decision to cancel the proposed takeover ‘following a detailed review of the investment case in light of recent adverse developments in the regulatory environment and telecoms market.’ Falling profits and the risks from court cases against Telekom for allegedly abusing its dominant market position had complicated the negotiations.

Slovenia, Cinven, Telekom Slovenije (incl. Mobitel)