The proceeds from this offering amounted to EUR 16.71 million. Of this sum, EUR 6.17 million was subscribed in Slovenia, while EUR 10.55 million was subscribed by investors in Poland. Successful completion of both equity offerings have consolidated Gorenje's strategic partnership with Panasonic and attracted some new international investors. The newly raised capital, amounting to a total of close to EUR 27 million, will allow the company to deleverage further, thus improving its financial position, and to intensify its development and investment plans that will improve its competitiveness. Secondary listing on the Warsaw Stock Exchange, which is planned by the end of this year, will open up access to investors at one of Central Europe's largest stock exchanges and improve Gorenje's international recognition.
Proceeds from the two offerings total at EUR 26.7 million
On August 23, 2013 Gorenje Shareholders Assembly confirmed the three equity offerings. Pursuant to the Shareholders Assembly resolution, new shares were first offered to the Panasonic Corporation which subscribed and paid in 2,320,186 newly issued shares at a price of EUR 4.31 per share, which amounts to a total of EUR 10 million. With this capital alliance, Panasonic showed their confidence in the success of business cooperation with Gorenje as a strategic partner in the field of development, manufacturing, and sales.
This was followed by the second equity offering from November 20 to December 17, 2013 when the shares were offered, at the same terms as to Panasonic, first to existing shareholders, then to employees, and finally to new investors in Slovenia and Poland. The right to subscription of new shares at EUR 4.31 per share was asserted by 291 of existing shareholders who paid in a combined total of 1,284,541 shares with total value of EUR 5.536 million. The employees subscribed and paid in 17,512 shares worth EUR 75,476. Gorenje also attracted some new investors in Slovenia and in Poland, who subscribed a total of 2,575,688 new shares, amounting to EUR 11.10 million. Thus, a total of 3,877,365 shares were subscribed and paid in in the second offering.
Gorenje raised EUR 26.7 million of fresh capital in the first and second equity offering combined, thereby increasing the share capital by 38.69%. Following the entry of the increase of equity into the Court Register, there will be a total of 22,104,427 ordinary Gorenje, d.d., shares.
Gorenje Management Board finds the offering activities successful, especially when considering the challenging macroeconomic and business conditions. Gorenje President and CEO Franjo Bobinac noted: "In these extremely harsh conditions, Gorenje succeeded in raising close to EUR 27 million of fresh capital and some new international investors, while consolidating the strategic partnership with the Panasonic Corporation. The proceeds will be allocated for boosting our development capacity and financial strength in our pursuit of the strategic business goals laid down. Therefore, we see the successful completion of the offering as a sign of confidence in our development plans which will reconfirm Gorenje's position in the home appliance manufacturing industry."
Fresh capital to be allocated for development and deleveraging
Gorenje will use the proceeds to fund the planned development and investment activities and to partly repay its financial debt. This will improve the Group's development capacity and international competitiveness, while strengthening its financial position. In 2013, Gorenje completed extensive activities in restructuring of manufacturing operations and optimization of business processes, especially sales, which will, along with the equity offering and other measures for improving the Group's financial strength, lay the foundations for better performance in the coming medium-term period, consistently with the adopted corporate strategy.
As of December 30, 2013 Gorenje shares presumably admitted to trading on the Warsaw Stock Exchange
Presumably on December 30, 2013 the shares of Gorenje, d.d., will be admitted to the Warsaw Stock Exchange, which will be the secondary listing for Gorenje stock. The Warsaw listing will allow Gorenje direct access to investors in one of Central Europe's largest stock markets and improve its international recognition. Gorenje stock has been listed on the Ljubljana Stock Exchange since 1998.
Possibility of further increase of share capital through debt-to-equity conversion
Pursuant to the Shareholders Assembly resolution adopted on August 23, 2013, Gorenje may also carry out a third offering that includes debt-to-equity conversion. Gorenje Management Board is currently discussing this possibility with the interested financial institutions. Gorenje may carry out this offering within one year from the day the changes to the Articles of Association were entered into the Court Register.
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