The Slovenia Times

Gorenje denies being scrutinised by Chinese giant


The Slovenian company said it was expecting indicative bids from prospective partners by 7 March, and that after these were examined selected bidders would be invited to conduct due diligence.

In today's edition, Finance cites unofficial information in reporting that the Chinese consumer electronics and household appliances group was already conducting due diligence on Gorenje through consultancy PWC.

"News got around weeks ago that Haier representatives are already walking around in the Gorenje plant in Valjevo", in Serbia, the business paper reported.

Haier is one of the largest manufacturers of household appliances in the world, while it also generates revenue in industries such as consumer electronics and real estate projects.

Holding Haier reported to have posted 38bn US dollars in sales revenue last year, 20% more than a year ago, while its profit surged 41%.

According to the paper, Gorenje is also being eyed by Meilling and Midea.

The press release from Gorenje said that Rothschild & Co., acting on behalf of Gorenje, had contacted a number of international groups active in the household appliances and related industries in December in order to test their interest in a potential strategic partnership with Gorenje, which could lead to participation in the company's share capital.

In the second half of January, an information package and a process letter were dispatched to potential partners who confirmed their interest in further assessing a potential for partnering with Gorenje.

After the assessment of the indicative offers, which are expected by 7 March, "certain prospective investors will be invited to participate in the due diligence process.

"During the second phase, prospective partners will be provided with additional information including access to a Virtual Data Room on Gorenje Group, selected site visits to Gorenje Group facilities and meetings with top management."

Gorenje says that some potential partners may decide to directly approach major shareholders to discuss the terms of the potential partnership. The company will release the next update by 15 March.

Gorenje also reported having completed its sixth consecutive issue of commercial paper in the amount of EUR 11.5m on 1 February to finance its operations.

Paid for by 23 investors, the commercial paper with the maturity date on December 21, 2018, has in the first subscription round the interest rate of 1.9%.


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