Velenje, Slovenia – Chinese appliance maker Hisense Group is set to take control of Slovenian white-goods maker, Gorenje.
Hisense was selected as the best bidder by Gorenje in a 9 May statement. The choice was made based on strategic elements; the feasibility of the transaction; and, the price per share.
Hisense has offered EUR 12 ($14) per share subject to its takeover of 50% plus 1 share of Gorenje shares, said the statement. The other two bidders were China’s Haier and Meiling.
Gorenje has issued 24.4 million shares. The deal will be priced at EUR 147 m. The company’s stock on the Ljubljana Stock Exchange jumped over 60% within a week of the announcement, putting its market cap at EUR 271m.
A strong brand in Europe, Gorenje sold 950,000 fridges and freezers in 2017, generating EUR 235m sales or 18% of the company’s total revenue, said its annual report. The company’s extensive sales network in the region will bring new opportunities to its new Chinese majority owner.
Currency Conversion: Xe.com