Velenje/Ljubljana, 11 May (STA) - China's Hisense published today its intent for the acquisition of all the shares of Gorenje. The Slovenian household appliance maker in turn announced it would leave three seats vacant for the new strategic partner as it appoints the supervisory board on 12 June. Moreover, no dividend payout is envisaged.
Gorenje picked Hisense as its new partner on Wednesday as the highest among three bidders from China. Hisense offered EUR 12 per share under the condition that it would be able to buy 50% plus one share in the company, which entails a deal worth at least EUR 146.5m.
Gorenje shareholders will be appointing the company's supervisory board on 12 June, three of the seven seats reserved for the representatives of capital are however expected to be left vacant for the new strategic partner.
The supervisory board has proposed the appointment of Bachtiar Djalil, Corinna Claudia Graf, Miha Košak and Bernard Charles Pasquier for a four-year term, starting on 21 July. All four are already serving as supervisors in the current term.
There will be no dividend payout at the household appliance maker, since distributable profit amounts to zero, according to the agenda of the meeting, announced today.
Gorenje wrote the distributable profit situation is the result of "long-term deferred development costs", amounting to EUR 67.8m, "having to be recorded, pursuant to the companies act, as a debit item".
Hisense was established in 1969 in China, originally focusing on the manufacturing of radios to develop in recent years into one the world's biggest makers of TV and household appliances.
It has production facilities around the world, including in Europe. According to the company's webpage, Hisense employs around 75,000 people in more than 20 subsidiaries.
The Hisense holding is state-owned, while the shares of subsidiaries Hisense Electric and Hisense Kelon Electrical holdings are listed on stock exchanges in Shanghai, Shenzhen and Hong Kong.
According to the newspaper Delo, the Hisense group generates roughly half of its revenue through exports. It also exports a lot to the US, where it mostly sells its products under the Japanese brand Sharp.
Hisense Electric, which produces TV sets and mobile phones, alone generated EUR 4.5bn in revenue last year, while the revenues of the group's second biggest subsidiary Hisense Kelon stand at around EUR 3.5bn.