Cinven deal for Telekom Slovenije in limbo

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Cinven’s bid for Slovenian telecommunications operator Telekom Slovenije has not yet been accepted by the Slovenian government despite an amended offer, the GP has stated.

The London-based GP made a conditional offer to buy 73% of Telekom Slovenije from Slovenian Sovereign Holding in May, which received qualified approval.

Cinven since submitted an amendment to the offer, following delays in regulatory approval of Telekom's merger with telecoms operator One in Macedonia and the acquisition of Debitel in Slovenia.

In a press release, the GP stated it understood the amended offer has yet to be accepted, putting the deal – rumoured to value Telekom between €719-850m – at risk of being abandoned or substantially altered.

"We believe that the proposed amendment is beneficial to all parties as it reduces the risk of a failed transaction and, on the assumption that the Debitel and Macedonia transactions receive the necessary approvals and proceed to completion as envisaged, does not alter the economic terms of the deal," Cinven stated of the amended offer.

The GP's offer is for 72.75% of the shares in Telekom, and would see Cinven pay between €110-€130 per share, depending on the company's performance and pending regulatory approvals.

As per Slovenian regulations, the GP would be required to purchase the outstanding balance of shares in Telekom at a later point if the deal goes through.