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Gorenje to Raise Capital by EUR 63M

Velenje, 16 July (STA) - After signing a long-term strategic partnership agreement with Japanese electronics group Panasonic, the Veljenje-based household appliances maker Gorenje called a shareholders' meeting for 23 August that will decide on three capital injections of up to EUR 63m in total.

According to a press release posted on the Ljubljana Stock Exchange, the company's share capital of EUR 66.38m, is to be initially increased by EUR 9.68m through the issue of 2,320,186 new ordinary shares at EUR 4.31 apiece.

All these fresh shares would be offered to Panasonic Corporation, with the deadline for subscription and payment 45 days from the adoption of the resolution.

After a successful conclusion of this stage, the management and the supervisory board propose the company's share capital to increase by a further amount of up to EUR 43.57m.

Up to 10,440,835 new shares, at EUR 4.31 apiece, would then be offered in exchange for cashcontributions in two rounds.

First the new shares are to be offered on the basis of pre-emptive right of the existing shareholders to all shareholders in the share register as on the day of adoption of the resolution. They would have the right to subscribe the amount proportional to their current shareholding in total share capital.

The shares not subscribed and fully paid up could then be offered by the management, subject to approval by the supervisory board, to third parties and/or Gorenje employees.

The second increase would be carried out immediately after registration of Panasonic Corporation as a new shareholder with the Central Securities Clearing Corporation.

After a successful completion of both capital increases, which would expand share capital to a maximum of EUR 119.63m, a further increase of up to EUR 9.68m is planned through the transfer of creditors' claims into ownership stakes.

At this stage up to 2,320,186 new shares would be issued, again at the price of EUR 4.31 per share, and offered to Gorenje creditors,

Gorenje and Panasonic signed a long-term partnership agreement at the start of July to cooperate in research and development, production and sales. Under the deal, Panasonic is to acquire EUR 10m in Gorenje stock.

One of the two key areas of cooperation will be research and development and a joint production platform for washing machines, refrigerators and built-in ovens.

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