Slovenia cancels Telekom sale after sole remaining bidder pulls out (updated)

Telekom Slovenije, D.d

04/08/2015 16:41

(Adds background, valuation, Cinven comment) 
    ZAGREB, Aug 4 (Reuters) - Slovenia has cancelled the sale of 
Telekom Slovenija  TLKM.LJ  after the only bidder, British 
private equity fund Cinven  CINV.UL , withdrew its offer, the 
body which coordinates privatisations in Slovenia said on 
Tuesday. 
    The future of Telekom, the largest of the 15 firms earmarked 
for privatisation, has hung in the balance as falling profits 
and the risks from court cases against Telekom for allegedly 
abusing its dominant market position have complicated the 
negotiations. 
    "SDH has recived notification from Cinven that they no 
longer want to pursue negotiations to conclude the sale," SDH 
said on its website.  
    SDH said it will look at options for the 72.75 percent stake 
in Telekom. Slovenia's largest telecoms firm is valued at around 
673 million euros ($738.15 million). 
    Cinven said in a statement the decision to withdraw had been 
taken "following a detailed review of the investment case in 
light of recent adverse developments in the regulatory 
environment and telecoms market". 
    The UK investment firm initially offered up to 130 euros per 
Telekom share, which would have valued the whole company at 850 
million euros.  
    Cinven revised its offer on June 15, adding the condition 
that it hold back some of the purchase price until Macedonian 
regulators approve Telekom's sale of its Macedonian unit to 
Telekom Austria  TELA.VI . Slovenia rejected the revised offer. 
 ID:nL5N0Z11TH  
    Macedonia approved the sale in July, after which Cinven and 
SDH resumed talks.  
 
($1 = 0.9117 euros) 
 
 (Reporting by Zoran Radosavljevic and Igor Ilic, editing by 
Louise Heavens) 
 ((Zoran.Radosavljevic@thomsonreuters.com; +385 1 4899 971; 
Reuters Messaging: 
zoran.radosavljevic.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/