Company "Gorenje" offers new issue of stocks worth 54.9m EUR

Slovenian company "Gorenje" announced that it would offer new issue of stocks worth 54.9m EUR to the existing stockholders the following month.

This issue will consist of total of 1.83m new stocks whose individual value is 30 EUR. The securities will be available to the existing stockholders in the period from July 6 to 20, and all the stocks that remain unsold would be offered to European Bank for Rehabilitation and Development (EBRD), International Finance Corporation (IFC) and company "Ingor", which was founded by executive managers of "Gorenje".

President of "Gorenje", Franjo Bobinac, announced that the price of the new issue would be based on the estimate of independent consulting companies "P&C Consulting" and KPMG.

Increase in stock capital has been approved at the annual meeting of stockholders in December 2006, when the initial plan of the company – that the capital be increased in two phases, by 15 and then by 35%, was rejected by the government pension fund KAD, which owns 25.2% of "Gorenje". The Assembly adopted the proposal for increase in stock capital by only 15%.

According to the words of Bobinac, fresh capital should make it possible for the company to apply strategy development plan, which anticipates growth of at least 50% prior to 2010 through internal increase in businesses and takeover of other companies.