Business News

Gorenje Raises EUR 16.71m in Fresh Capital

Velenje, 18 December (STA) - Household appliances maker Gorenje has finalised the second phase of recapitalisation, raising an additional EUR 16.71, including EUR 10.55m from investors on the Warsaw Stock Exchange.

The first phase of the planned EUR 63m capital increase at Gorenje took place in the autumn, with Japanese electronics group Panasonic purchasing EUR 9.68m in Gorenje shares to acquire a 13% stake in the company.

The company has solidified its partnership with Panasonic and attracted new foreign investors, Gorenje said in a press release on Wednesday, adding that the fresh capital of almost EUR 27m will enable it to further deleverage and improve its financial situation.

With the dual listing on the Warsaw Stock Exchange planned for 30 December, Gorenje will have the access to investors at one of the biggest stock markets in Central Europe and promote it internationally, the company added.

The second phase had two rounds. In the first round, the fresh shares were offered to the existing shareholders, while the second round targeted Gorenje employees and new investors, including in Poland.

The existing shareholders have purchased EUR 5.54m in Gorenje shares, employees have purchased only EUR 75,476. Slovenian and foreign investors meanwhile purchased a total of EUR 11.1m.

The first two phases of recapitalisation increased Gorenje's share capital by EUR 26.7m or 38.69%.

Gorenje chairman Franjo Bobinac announced that the fresh capital will be used to boost development capacities and financial resources for strategic business objectives and also to deleverage.

"We also understand the successful recapitalisation as a sign of trust in our development plans, with which we will solidify Gorenje's position in the household appliance industry," Bobinac added.

In line with the decision taken by Gorenje shareholders in August, a further increase of up to EUR 9.68m is planned through the conversion of creditors' claims into ownership stakes within the next 12 months.

Gorenje saw its loss for the first nine months of the year widen to EUR 18.2m, which is almost three times more than in the same period of last year.

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