Gorenje signs an agreement to divest majority shareholding in Gorenje
Surovina Pursuing its strategy, Gorenje Group is focusing on its core activity of home products and services.
Velenje, Slovenia / Grodzisk Mazowiecki, Poland; July 24, 2015 – Gorenje, d.d., signed with the Polish company Tesla Recycling S.K.A., a daughter company of Elemental Holding, S.A., a share sale and purchase agreement to divest the majority shareholding in its Daughter Company Gorenje Surovina, d.o.o., including the latter's Daughter Companies Kemis Valjevo, d.o.o., Kemis BH, d.o.o., and Cleaning System S, d.o.o., Šabac.
On July 22, 2015, Gorenje Supervisory Board approved the Management Board resolution to divest the 69.32 % stake in the company Gorenje Surovina. The agreed purchase price, which is based on the fair value of the entire company Gorenje Surovina in the amount of EUR 29.2 million, minus the company's debt as at the transaction closing date, will be paid by the buyer in three instalments. Collateral for the payment of purchase price will involve pledging of the stake and accession to debt of the company Elemental Holding on the part of the buyer.
To support further development of the company Gorenje Surovina and in order to improve the reliability of the actual execution of the transaction, Gorenje Group and Elemental Holding Group remain partners in Gorenje Surovina for a period of no less than the next three years. In the period, they will continue to negotiate the divestment of the remaining part of Gorenje's investment in the company.
Upon signing, Pawel Jarski, director of Elemental Holding, stressed that this was the largest Polish investment in Slovenia, and Gorenje CFO Peter Groznik commented: "As we pursue Gorenje's strategy, we are focusing on our core activity of development, production and sale of home appliances. The signing of the share sale and purchase agreement to divest the majority shareholding in Gorenje Surovina is the next step in the process of strengthening of our core activity. Moreover, the proceeds will have a notable impact on the Group's further deleveraging and financial stability."
Elemental Holding S.A. is a leading Polish corporate group dealing with collection and processing of waste metals. With its subsidiaries in Poland, Slovakia, Lithuania, and Turkey, it is a key player in the segment of non-ferrous metals, electronic waste, and catalytic converters. The company is listed on the Warsaw Stock Exchange, and its current market capitalization exceeds EUR 160 million. Tesla Recycling is the Polish market leader in recycling of integrated circuits, printed circuit boards and electro waste. The full range of services offered by Tesla Recycling includes weighing, loading, transport, and recovery, including recycling of waste electrical and electronic equipment as well as ferrous and non-ferrous metals. Tesla Recycling is a daughter company of Elemental Holding.
Gorenje Management Board is also in the final stage of negotiations on the divestment of its shareholding in the company Publicus, d.o.o., and its subsidiary Ekogor. The potential buyer in this case is the company HIS, d.o.o., Ljubljana, which currently holds 49-percent of Publicus. Moreover, the Management Board is examining the possibilities to divest other companies active in Gorenje Group's non-core activities.
The information included in this announcement will be available at the official website of the company Gorenje, d.d., Velenje, at Gorenje Group, for a period of no less than 5 years from the date of announcement.
Gorenje, d.d., Management Board