Slovenia expected to receive bids for Telekom Slovenije
10 April 2015 |
Slovenia is expected to receive two binding bids – both below market value – for Telekom Slovenije, Reuters reports.
The bids from investment fund Cinven and Deutsche Telekom are said to be approximately €110 per share, compared to its present price of €130.05, according to a source who did not want to be identified.
The lower than market value price is likely to be because of Telekom Slovenije’s declining profits as well as risks from several court cases against the operator for allegedly abusing its strong position in recent years.
"Any acquirer of the business would have to take those potential liabilities on as a risk and that risk would have to be baked into the offer price," the source told Reuters.
Telekom Slovenije posted a net profit of €1.6 million in 2014 from €52.3 million the previous year. The operator, which is majority state-owned, has a market capitalisation of approximately €867 million.