Slovenian SDH approves the sale of Telekom Slovenia to Cinven (updated)

Telekom Slovenije, D.d

10/06/2015 21:03

(Updates with SDH confirmation, quote, details, background) 
    By Marja Novak 
    LJUBLJANA, June 10 (Reuters) - Slovenian state investment 
firm SDH approved the sale of the country's largest telecoms 
provider, state-owned Telekom Slovenia  TLSG.LJ , to UK 
investment firm Cinven  CINV.UL  on Wednesday. 
    SDH, which is coordinating privatisation, said the sales 
contract still has to be agreed with Cinven and approved by the 
SDH supervisory board. 
    Telekom is the largest of 15 companies that were earmarked 
for privatisation in 2013 and the fifth of those firms to be 
sold. 
    Cinven is the only bidder for Telekom and has, according to 
sources, offered to pay up to 130 euros per Telekom share which 
would value the whole firm at 850 million euros ($962 million). 
 ID:nL5N0YB48D  
    The offer consists of an upfront payment of 110 euros a 
share, additional payment of 15 euros a share depending on the 
outcome of outgoing litigation of Telekom Slovenia and an 
additional 5 euros a share depending on the company's 
performance, the sources said. 
    "SDH will inform the potential buyer that the supervisory 
board exclusively approved its (Cinven's) binding offer of May 
20, 2015," SDH said in a statement, adding it did not approve 
the changes to the binding bid that were made by Cinven after 
that date. 
    The changes were not publicly revealed but according to the 
local media Cinven wishes to retain a part of the purchase price 
until Telekom finalises the sale of its Macedonian unit which 
has started last year. 
    Cinven gave no immediate comment. 
    Shares of Telekom closed unchanged at 98 euros on Wednesday, 
while the blue-chip SBI index  .SBITOP  lost 1.27 percent. 
    Slovenia, which narrowly avoided an international bailout 
for its banks in 2013, has been reluctant to sell its major 
companies over the past decades so the government still controls 
about 50 percent of the economy. 
    The opposition United Left party and several civil society 
groups are on Thursday planning a street protest against the 
privatisation of Telekom and other large state companies, saying 
their sale is not economically viable. 
    ($1 = 0.8832 euros) 
 
 (Reporting By Marja Novak; Editing by Elaine Hardcastle) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/