According to Reuters, Slovenian appliance maker Gorenje announced on Wednesday that the company has received a total of three companies’ bids. Chinese home appliance manufacturer Hisense has offered the highest bid, giving a quotation of 12 euros (approximately 10.5 pounds) per share.
Gorenje announced after the close of the Ljubljana Stock Exchange that Hisense had submitted a 293 million euro offer and expected to announce its acquisition of Gorenje within 15 days.
This price is provided when Hisense receives at least 50% of Gorenje.
On Wednesday, Gorenje's stock price closed at 6.8 euros, up 6.6 percentage points, and the same day the blue chip SBI index <.SBITOP>Rose 0.4%.
Gorenje announced on Tuesday that the company had received three tender offers from companies that had completed due diligence in the past few weeks. However, the company did not disclose the names of the three intended purchasers.
According to local newspaper reports, in addition to Hisense, Haier and Hefei Meiling also came from China.
The three companies did not immediately comment.
Gorenje is one of the largest exporters in Slovenia. The company announced last year that it is seeking a strategic partner to increase cost efficiency and strengthen the brand.
The company’s annual performance report released in March this year shows that due to cost pressures and increased competition, the company’s 2017 net profit fell by 84%.
Gorenje’s major shareholders include 11.8% of IFC and 10.7% of Matsushita Corporation of Japan.
Matsushita conducted a due diligence on Gorenje in 2016, but decided not to take over the company. The reason is that increasing holdings of Gorenje does not meet its investment strategy.