Business News

IFC Confirms Capital Injection for Gorenje

Velenje, 21 May (STA) - The International Finance Corporation (IFC) has confirmed it will be taking part in raising fresh capital for household appliance maker Gorenje with an investment of up to EUR 25m in the first round of capital increase.

The IFC, which operates under the auspices of the World Bank, will also provide EUR 50m for restructuring of Gorenje's long-term debt and organise a EUR 100m credit line from banks, Gorenje said on Friday.

The proposal for the capital increase will be put to shareholders at Gorenje's annual general meeting next week.

Gorenje plans to raise just under EUR 30m with the issue of 2.25 million of new shares.

The first round will exclude the preemptive right of existing shareholders in order to give the IFC a quick and easy way to enter Gorenje's ownership structure.

A second round of capital increase is planned for the autumn and is to involve all existing shareholders at the time the prospectus is published. If there are any shares left over, they will be offered to third-party investors.

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