GORENJE, d.d., Velenje
Information about procedure conclusion
In accordance with the provisions of the Code of Best Practice for WSE Listed Companies, the Ljubljana Stock Exchange Rules, and the applicable legislation, the company Gorenje, d.d., is publishing the following announcement:
Velenje, November 10, 2016 - We received a notice with the following content from the Panasonic Corporation Senior Managing Director Tetsuro Homma, addressed to Gorenje CEO and President, explaining the decision regarding the increase of shareholding stake in Gorenje:
»After the due diligence period, we have conducted the valuation and assessment process, taking all related matters into consideration such as current market conditions, current composition of Gorenje shareholders, the analysis of due diligence results from our point of view and so on. As a result of such valuation and assessment, we concluded that increase of shareholding stake in Gorenje is not consistent with the current investment strategy of Panasonic Corporation.
Therefore, pursuant to Article 3.7.1. of the Strategic Collaboration Agreement, we regret to inform you that Panasonic Corporation is currently not in position to continue its activities to increase its shareholding stake in Gorenje and will not proceed with a Takeover Procedure.
We very much appreciate our business collaboration with Gorenje and look forward to the continuation of our business partnership.«
Supervisory board oversees in detail operations of the company Gorenje, d.d., as well as the implementation of the Gorenje Group Strategic Plan 2016-2020 and is regularly and promptly informed about all the activities regarding the possible increase of the Panasonic’s shareholding stake in Gorenje. Supervisory board and management board accent that Panasonic's decision not to proceed with its activities to increase its shareholding stake in Gorenje does not affect the set goals and autonomous development of Gorenje Group, all of which the company defined in its strategic plan. Aligned with the goals in this strategic plan, Gorenje Group has in the first year of its implementation achieved more than 50 percent growth of the operating profit as a result of revenue growth and favourable sales structure. As estimated, Gorenje Group will in 2016 attain the planned net profit of EUR 7.6 million. Gorenje and Panasonic plan to proceed with their business cooperation in various areas, according to their joint agreement.
Disclaimer: The English text for all announcements is for information purposes only!
The information of this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenjegroup.com, at least 5 years from the date of the announcement.