Cinven's purchase of Telekom Slovenia delayed by hitch (updated)

Telekom Slovenije, D.d

11/06/2015 12:40

(Updates with SDH quote, share price) 
    By Marja Novak 
    LJUBLJANA, June 11 (Reuters) - A deal for British investment 
fund Cinven  CINV.UL  to buy Telekom Slovenia  TLSG.LJ  has not 
yet been finalised because of haggling over an amendment to 
Cinven's bid. 
    SDH, the body which coordinates privatisations in Slovenia, 
told Reuters on Thursday that talks with Cinven were continuing 
and were expected to be concluded within a week. The deal  
values Slovenia's largest telecoms company at up to 850 million 
euros ($957 million).  
    SDH had on Wednesday agreed to Cinven's initial bid, filed 
on May 20, for Telekom. However, it rejected an amendment to the 
offer that it said had been added later, saying the sale 
contract with Cinven therefore had still to be completed. 
 ID:nL5N0YW4JV  
    "Cinven considers the amendment an integral part of the 
offer, without which Cinven would not be able to proceed towards 
completing this transaction," Cinven said in a statement. 
    Neither side has given details of the amendment. Local media 
reported it would allow Cinven to retain a part of the purchase 
price until local regulators approve two other deals --  
Telekom's purchase of Slovenian mobile phone operator Debitel 
and its sale of its Macedonian business. 
    According to sources, Cinven is offering to pay between 110 
and 130 euros per Telekom share, depending upon Telekom's 
performance and the outcome of litigation against Telekom. 
    That would value the whole of Telekom at between 719 million 
and 850 million euros. 
    Shares of Telekom closed 0.53 percent higher at 98.5 euros 
in Thursday trade, while the blue-chip SBI index  .SBITOP  
gained 0.1 percent. 
    Cinven is bidding for 72.75 percent of Telekom but would 
later have to purchase the rest of the shares at the same price, 
as required by Slovenian legislation. 
    Telekom is the largest of 15 companies earmarked for 
privatisation in 2013. So far four of those companies have been 
sold.  
($1 = 0.8878 euros) 
 
 (Reporting by Marja Novak; Editing by David Holmes and Keith 
Weir) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/