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IFC Acquires 11.7% Share in Gorenje

Velenje, 12 July (STA) - In what is the first round of the capital increase in home appliance maker Gorenje, the International Finance Corporation (IFC) acquired on Thursday a 11.7% share in the Velenje-based company for EUR 25m, Gorenje wrote on the website of the Ljubljana Stock Exchange on Monday.

The issue of new shares resulted in the share of the state-owned KAD fund decreasing from 25.1% to 22.2%, while the share of Ingor, a company established by Gorenje's executives, dropped from 5.6% to 4.9%.

In May, the board of directors of the IFC, which operates under the auspices of the World Bank, confirmed the investment and the shareholders of Gorenje backed the capital increase, upon which a contract was signed in early June.

According to Gorenje chairman Franjo Bobinac, the capital increase will help Gorenje implement its strategic plan, invest in development and carry out possible takeovers and restructuring.

A second round of the capital increase of EUR 25m is to follow IFC's entry into Gorenje's ownership structure in three phases.

The price of the newly issued shares will be the same in both rounds, standing at EUR 13.32 per share, which is a six-month average of the value of Gorenje's shares on the Ljubljana Stock Exchange.

While in the first round the shares were offered directly to the IFC, there will be no limitations to subscription for shares in the second round. If any shares remain, they will be offered to third parties.

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