Romanian stock indices close mixed in higher turnover
Bulgarian stock indices retreat amid higher turnover
Bulgaria to collect 2.1 bln euro for energy security fund in 2023
OECD downgrades Slovenia's 2023 GDP growth f'cast to 1.4%
Rompetrol Rafinare invests $6.5 mln in storage tanks overhaul
Oct 01, 2007 18:06 EEST
In LJUBLJANA story dated October 1, please read in the second para "British Telecom" instead of " British Telekom"
October 1 (SeeNews) - Fifteen candidates have expressed interest in buying 49.13% of majority state-owned Telekom Slovenije but some market analysts noted the absence of major foreign telecommunication companies.
“It is surprising that the number of companies is so high. I expected less. However, none of the bigger telecoms companies, like Deutsche Telekom, British Telecom or Spain’s Telefonica, applied. It is alarming for Telekom Slovenije,” Marko Jovic, an analyst with local bank Abanka Vipa, told SeeNews.
The companies that showed an interest by the September 28 deadline include Russian financial group Sistema, Croatian telecom T-HT, Dubai-based Oger Telecom, Luxembourg's Skywheeler, British companies Providence Equity, Apax and Babcock & Brown, Hungary's Magyar Telekom, Slovenia's Engrotus, Australia's Macquarie Bank, Luxembourg/U.S.-based CEP III/(Carlyle), a consortium of Bain Capital & Axos Capital, Iceland's Skipti, U.S.-based SAC PCG LLP, and Telecom Egypt, Slovenia’s Economy Ministry said.
Jovic said only subsidiaries of the bigger telecoms companies have expressed interest, pointing to T-HT and Magyar Telekom, units of Deutsche Telekom.
He expects blue chip Telekom Slovenije’s share price to fall as a result. “A serious investor would consider if there are not the right names. The question is why the bigger telecoms companies did not apply,” Jovic said, adding that they would not be able to justify the price to be offered before their shareholders.
Some analysts expect potential buyers to bid for shares in Telekom Slovenije at below their market price. The shares lost 0.42% to an average price of 464.97 euro ($662) on the Ljubljana Stock Exchange on Monday.
"There is interest [in Telekom Slovenije’s stake] but not at this price,” said Franci Tusek, an analyst with the Medvesek Pusnik brokerage house.
He added that the high interest might influence Telekom Slovenije’s share price positively in the short term but he expects the potential buyers to offer a price of below 400 euro per share.
However, Andraz Vrh, asset manager with Ilirika brokerage house, said the share price will go up due to the high interest. "There is interest, which is good for the price [to be offered]," he added.
The companies that have expressed interest will be able to submit their non-binding bids by October 15.
The government owns 74% of Telekom Slovenije directly and indirectly through state-owned investment funds. Local and foreign shareholders own the rest.
($ = 0.70 euro)
You have run out of free articles this month.
Sign up in for
and get ten (10) free articles per month or sign up for
and get unlimited access.
Browse our free newsletter options