Cinven’s bid to acquire Telekom Slovenije may fall through after state investment firm SDH ruled out a proposed amendment to the offer.
SDH is coordinating the sale of Telekom Slovenije. Cinven’s second bid, which valued the unit at $850 million, was initially accepted. Following this, an amendment to the agreement was proposed but rejected by SDH since the contract had not yet been finalised.
The nature of the amendment has not been disclosed, but some local reports have claimed that it would enable Cinven to hold back a portion of the agreed sum until two other deals concerning Telekom Slovenije – its acquisition of Debitel and divestment of its Macedonian unit - receive the regulatory green-light.
Cinven’s stance on the matter suggests it could be a deal-breaker: “Cinven considers the amendment an integral part of the offer, without which Cinven would not be able to proceed towards completing the transaction.”
Lodged in May, Cinven’s first offer for a 72.75% stake in Telekom Slovenije was dismissed as too low by Slovenian politicians, prompting a second bid. The investment group specified that the government had until June 10 to accept. While this deadline has apparently been met, the amendment is now the issue in hand.