Cinven walks out of Telekom Slovenije negotiations as deal falls apart

Cinven has abandoned its attempted purchase of the Slovenian government’s 72.75% stake in Telekom Slovenije.

SDH, the privatisation regulator, has officially ended the sale process following confirmation from Cinven that it wished to cease negotiations on the grounds that “the transaction is no longer economically feasible”.

Cinven’s initial €850 million bid for the stake was accepted in June, but last-minute revisions to the terms – which would have allowed Cinven to retain a percentage of the purchase price until Telekom Slovenije had sold its Macedonian unit – caused the offer to be rejected by Slovenia.

At the time, Cinven stated that it remained interested in the acquisition as long as the Macedonian sale went through. However, taking into account recent regulatory measures, it has revised its stance, stating that “the regulatory environment will not be investment friendly for Telekom Slovenije”.

In addition, the recent decision to scrap roaming charges within the EU as well as “changes in the operation of Telekom Slovenije” were deemed likely “not [to] have [a] positive impact on the company’s performance results”.

SDH issued a statement which noted: “One of the main reasons Cinven’s withdrawing from the negotiations, as mentioned by Cinven, refers to the highly uncertain business environment in which Telekom Slovenije operates, highlighting the complex nature of the political environment in the country.”

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