Slovenian Sovereign Holding (SSH or SDH in Slovenian) said the process for the sale of a majority stake in Telekom Slovenia is continuing after it received just one bid for a 72.75 per cent stake in the state-owned operator.
"SSH, together with financial and legal advisors, is in the process of evaluating the binding offer received," the state investment fund said.
It had been speculated that the sale of the government's majority stake would be shelved after shares in Telekom Slovenia dropped almost 7 per cent on Tuesday following the news that just one binding offer had been received, Reuters reported.
SSH said it will "continue to promptly inform the interested public on all significant decisions made in the process," although it has not revealed the identity of the bidder or the amount of the bid.
Despite the lack of official confirmation, reports say that investment fund Cinven offered about €110 ($116) per Slovenia Telekom share, valuing the company at about €719 million, Reuters said, citing unnamed sources. Deutsche Telekom has also previously been named as a potential bidder.
Analysts told Reuters they believed that the government had expected to achieve a valuation of about €1 billion.
"The government has indicated that it will not sell at any price," Saso Stanovnik, chief economist of investment firm Alta Invest, told the news agency.
Slovenia last attempted to sell the telecoms operator in 2008 but cancelled the process, saying the bids were too low.
Telekom Slovenia competes with Telekom Austria's Si.mobil, Tušmobil and T-2 on the mobile market. Cable operator Telemach completed the acquisition of Tušmobil at the beginning of April.
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