Velenje, 26 April (STA) - Household appliance maker Gorenje announced on Monday that its shareholders would decide on 28 May on a EUR 9.4m capital increase provided by the International Finance Corporation (IFC) as well as a EUR 6.3m capital injection involving the existing shareholders.
In line with the proposal to be discussed by Gorenje's annual general meeting, the IFC, which operates under the auspices of the World Bank, would be offered EUR 9.4m worth of newly-issued shares at a price of EUR 13.32 per share, which was the six-month average determined on 12 April.
Gorenje's management wants the new shares, which would increase the company's nominal capital to EUR 67.94m from around EUR 58m, be reserved for the IFC and thus exclude preemptive right for existing shareholders.
Gorenje believes that this is the easiest and quickest way to enable the IFC to enter the company with its announced investment of slightly under EUR 30m.
At the same time this would allow Gorenje to restructure its long-term debt, as the IFC would offer a EUR 50m loan to the company while also organising another loan by other banks amounting to a total of EUR 100m.
A second capital increase is planned for the autumn and is to involve all existing shareholders at the time the capital increase prospectus is published.
While the Velenje-based company expects to get up to EUR 20.2m in fresh capital, the nominal capital increase is envisaged at a maximum of EUR 6.33m. Subscriptions for at least 70% of the shares issued will be necessary to deem the increase successful.
Gorenje's 28 May AGM will also decide on new representatives of shareholders on the supervisory board, the press release by the company reads.