Telekom Slovenia shares down after report sale could be postponed (updated)

Telekom Slovenije, D.d

15/06/2015 11:28

(Updates with share price, details) 
    By Marja Novak 
    LJUBLJANA, June 15 (Reuters) - Shares in state-owned Telekom 
Slovenia  TLSG.LJ  lost more than 6 percent on Monday morning 
after a local newspaper reported that the sale of the company is 
likely to be postponed or cancelled. 
    Daily newspaper Finance reported on Monday that the sale of 
Slovenia's largest telecom operator to UK investment firm Cinven 
 CINV.UL  was not likely to go through as the two sides were 
unable to agree on a sales contract. 
    Telekom shares were down 6.16 percent by 0950 GMT to 93 
euros while the blue-chip SBI index  .SBITOP  was off 1.27 
percent. 
    Finance said Cinven over the weekend sent a letter to state 
firm SDH, which is coordinating the sale of Telekom, insisting 
that Cinven retains a part of the purchase price until 
Macedonian regulators approve Telekom's sale of its Macedonian 
unit. 
    SDH said last week it would only accept Cinven's offer for 
Telekom without the condition regarding the Macedonian unit. 
 ID:nL5N0YX255  
    The sale of Telekom's Macedonian unit to Telekom Austria 
 TELA.VI  was agreed last year but Macedonia's market regulator 
has until July 9 to decide upon whether to approve it or not. 
    Talks on the sale of Telekom Slovenian between SDH and 
Cinven could continue once it is clear whether Telekom's 
Macedonian unit is to be sold, the newspaper said.   
    Cinven has offered up to 130 euros per Telekom's share which 
would value the company at 850 million euros. 
    Cinven declined to comment. SDH said it would reply to 
Cinven's letter on Monday. 
    Telekom is the largest of 15 companies that were earmarked 
for privatisation in 2013. Four have been sold while one is in 
bankruptcy procedures. 
    Slovenia planned to sell Telekom in 2008 but cancelled the 
sale citing low bids. 
    The country, which narrowly avoided an international bailout 
in 2013, has been reluctant to sell its major companies in the 
past so the government still controls about 50 percent of the 
economy. 
     
     
 
 (Reporting by Marja Novak; editing by Jason Neely) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: TELEKOM M&A/CINVEN