GORENJE, d.d., Velenje
Gorenje signs a debt-to-equity conversion agreement with Gorenjska banka
Secondary equity offering in exchange for non-cash contributions
Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d., the Financial Instruments Market Act, the Corporate Governance Code for Joint Stock Companies, and in accordance with the provisions of the Code of Best Practice for WSE Listed Companies, the company Gorenje, d.d., Velenje, hereby makes the following announcement:
Velenje, Kranj, July 10, 2014 — Pursuant to the resolution adopted by Gorenje's 20th Shareholders Assembly, dated August 23, 2013, on the increase of share capital by non-cash contributions, Gorenje and Gorenjska banka signed today a debt-to-equity conversion agreement according to which receivables in the amount of EUR 5,668,365.46 held by Gorenjska banka are to be exchanged for Gorenje stock. Gorenjska banka will subscribe the shares at a price of EUR 4.31 per share, which was also confirmed at the 20th Shareholders Assembly, and thus acquire 1,315,166 newly issued Gorenje shares.
In the coming days, Gorenje will start the procedures of entering the increase of share capital into the court register and issuing the shares with the Central Securities Clearing Corporation. In addition, a request for expansion of listing on the Ljubljana Stock Exchange has already been filed, subject to relevant suspensive conditions.
Gorenje is familiar with the intent of Gorenjska banka to offer the newly acquired Gorenje shares to other investors.
On August 23, 2013 Gorenje shareholders approved three capital increases. The first and the second capital increase included offering of newly issued shares in exchange for cash contributions and they resulted in nearly EUR 27 million of fresh capital for Gorenje in Slovenia and abroad.
The third capital increase includes debt-to-equity conversion on the part of the financial institutions that were company creditors as at the day of the 20th Shareholders Assembly, i.e. exchange of their receivables for Gorenje shares. The company is looking to increase its share capital within this third capital increase up to the amount approved by the Shareholders Assembly resolution, i.e. EUR 9,681,964.61 or 2,320,186 newly issued shares.
Disclaimer: The English text for all announcements is for information purposes only!
The information in this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenje.com, for at least 5 years from the date of this announcement.
The Management Board