Cinven sets deadline for Telekom Slovenije bid
Cinven Group has set a deadline for Telekom Slovenije to make a decision on its bid to acquire the company.
The private equity firm has given the state-owned company until June 10 2015 to decide on its final offer. The European Bank for Reconstruction and Development (EBRD) is considering Cinven’s offer to finance part of the acquisition by providing debt and/or equity.
Cinven is the only bidder for Telekom Slovenije and has raised its offer to €130 per share, valuing the company at approximately €850 million.
“Our offer is good since it includes a takeover premium while our experience with the creation of successful telecommunication operators in France, Netherlands and recently in Spain, confirms that we are successful in improving business and growth of companies,” Nicolas Paulmier, partner at Cinven, said.
“There is a risk for shareholders of Telekom Slovenije that the value will be lower if the company isn’t sold, since lower investment would probably result in the trend of deteriorating business and further reduction of the share price,” the company added.
Telekom Slovenije, along with 14 other companies, were earmarked for privatisation by the government in 2013.