Telekom: The sale process for the sale of Telekom Slovenije has come to a close
Yesterday, Slovenian Sovereign Holding received the notification from Cinven, the only bidder for the purchase of 72.75 % shareholding in Telekom Slovenija that Cinven did not wish to continue with negotiations in the final phase of the Telekom Slovenije sale process.
In their letter, Cinven mentioned that considering several important developments which have taken place since their bid for the purchase of 72.75 % shareholding in Telekom was made in June, for Cinven, the transaction is no longer economically feasible. Some of the main reasons for the Cinven's decision to withdraw from the transaction are mentioned in the remainder of the press release.
On the basis of the recent measures taken by the telecommunication market regulator (Agency for Communication Networks and Services of the Republic of Slovenia - AKOS), Cinven has assessed that the regulatory environment will not be investment-friendly for Telekom Slovenije; in addition, the Cinven's decision was also influenced by the recent modifications in the EU-wide regulations in regard to international roaming, and the changes in the operation of Telekom which will not have positive impacts on the company’s performance results, and which had not been taken into account in the Cinven’s bid. Due to the tightened conditions in the financial markets, the costs of financing have increased which has a negative effect on the entire sale process. However, one of the main reasons for the Cinven's withdrawing from the negotiations, as mentioned by Cinven, refers to a highly uncertain business environment in which Telekom Slovenije operates, highlighting the complex nature of the political environment in Slovenia, together with the strong response by the public in regard to this sale process. In the Cinven's opinion, these are the main reasons for which Cinven was not able to realise plans which Cinven had as a potential investor in Telekom Slovenije for a certain period of time.
Owing to the Cinven’s information of their decision not to continue with the sale process, Slovenian Sovereign Holding has officially closed the process for the sale of 72.75% shareholding in Telekom Slovenije.
In the coming period, Slovenian Sovereign Holding will examine the possibilities regarding the further steps for the managing of assets in Telekom Slovenije. In accordance with the Capital Assets Management Strategy adopted by the National Assembly, the state-owned assets in Telekom Slovenije are classified as portfolio assets, thus making SSH to provide for the implementation of the best corporate governance practice in the company.
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