Slovenia Telekom shares drop on uncertainty over sale (updated)

Telekom Slovenije, D.d

14/04/2015 14:36

(Adds comment from sale coordinator) 
    By Marja Novak 
    LJUBLJANA, April 14 (Reuters) - Shares in Slovenia's largest 
telecoms operator, Telekom Slovenia  TLSG.LJ , dropped almost 7 
percent on Tuesday on speculation that the sale of the 
government's majority stake may be shelved. 
    Slovenia's state investment fund SDH, which is coordinating 
the sale, said on Monday that it had received only one binding 
bid for the business.  ID:nL5N0XA3KS  
    After stock market trading closed on Tuesday with Telekom 
Slovenia shares down 6.9 percent at 119.2 euros, SDH said the 
sale process will continue. 
    "SDH, along with financial and legal advisers, is assessing 
the binding bid," it said in a statement, without revealing the 
bidder or the value of the bid. 
    Sources familiar with the matter had told Reuters that 
investment fund Cinven  CINV.UL  offered about 110 euros per 
Telekom share, valuing the company at about 719 million euros 
($768 million) .  
    Analysts believe that the government, which controls 72.75 
percent of Telekom, had expected to achieve a valuation of about 
one billion euros. 
    Cinven has declined to comment. 
    "The government has indicated that it will not sell at any 
price," said Saso Stanovnik, chief economist of investment firm 
Alta Invest, adding that there is a chance it could scrap the 
sale if the bid is below 120 euros per share and is not 
improved. 
    Slovenia tried to sell Telekom in 2008 but cancelled the 
process, saying the bids were too low. 
    Telekom is the largest of 15 companies that were earmarked 
for privatisation in 2013. So far only three have been sold. 
    Last week parliament ousted Slovenia's defence minister 
because he had ordered the army secret service to analyse the 
security consequences of the sale of Telekom.  ID:nL5N0X64EW  
($1 = 0.9368 euros) 
 
 (Editing by Mark Potter and David Goodman) 
 ((Marja.Novak@thomsonreuters.com;+386-1-5058805;  Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/