Cinven has withdrawn its offer for Telekom Slovenije, prompting Slovenia’s government to scrap the sale of the state-owned operator altogether.
The news was broken on Tuesday by Slovenian Sovereign Holding (SDH) – the government-run asset manager handling the sale process.
In a statement, it reeled off a number of reasons why Cinven changed its mind about buying a 72.75% stake in the Slovenian incumbent.
According to SDH, the U.K.-based private equity firm has concluded the regulatory, political and business environment in Slovenia is not conducive to investment. Cinven’s decision was also influenced by the EU’s plan to scrap roaming fees, and an increase in the cost of financing, SDH claimed.
In addition, SDH said changes in Telekom Slovenije’s operating structure – which may or may not be in reference to the sale of its Macedonian unit and its acquisition of MVNO Debitel – also influenced Cinven’s decision.
"Owing to the Cinven’s (sic) 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," said SDH.
Tuesday’s announcement brings a sorry end to a long-running saga.
In 2014, Cinven was one of 10 companies understood to be interested in acquiring Telekom Slovenije.
Private equity firms Apax, Bain Capital and Providence Equity were thought to have submitted offers in July 2014. Russia’s MTS, German incumbent Deutsche Telekom, and Turkcell were also said to be in the running, as were Apollo Global Management, CVC Capital and PPF Group.
However, one-by-one the prospective suitors dropped out, leaving just Cinven, which submitted a low-ball offer in April this year.
Following talks, Cinven’s offer was accepted on 20 May. However, the private equity firm then sought to amend its offer and was swiftly rebuffed.
Despite willingness from both sides to negotiate, it would appear the parties have failed to reach an agreement.
