Business News

Gorenje Issuing Up to EUR 25M Worth of New Shares

Velenje, 07 September (STA) - Slovenia's household appliance manufacturer Gorenje will make a public offering on Thursday for up to 1,876,876 new shares at EUR 13.32 apiece, in the total emission value of nearly EUR 25m, the company said Tuesday.

As a result, Gorenje's share capital will increase from EUR 66.4m to up to EUR 74.2m. The new shares will be listed on the prime market of the Ljubljana Stock Exchange, where the existing shares are already quoted.

The subscription for new shares will begin on the fourth working day after Thursday's announcement of the prospectus, and will be conducted in three rounds.

In the first round between 15 September to 4 October, the existing shareholders will have a pre-emptive right to subscribe new shares relative to their current interest in the share capital.

The shares not subscribed and paid up will then be offered to the existing shareholders without restrictions between 8 and 22 October.

In the third round, between 28 October and 16 November, the remaining shares will be offered to third parties invited by Gorenje management, according to a release posted on the web site of the Ljubljana Stock Exchange.

Gorenje may conclude the offering sooner if all the shares offered are paid up before the subscription deadline in the second or the third round. Shares may be bought at subscription points at the NLB bank.

Gorenje shareholders endorsed in May a two-time increase in share capital, by EUR 7.8m each. In the first increase, the whole issue was paid up by the International Finance Corporation (IFC), a member of the World Bank Group.

The capital raising will facilitate the company to implement its strategic plan which includes growth of revenues to EUR 1.5bn by 2014, Gorenje said in the press release.

It added that the new share issue would also "allow highly committed investment into development of new products and services, acquisitions or other business combinations, as well as restructuring in the the Home Product Division and the Ecology, Energy and Services Division which shows a higher growth potential."

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