Quick Take: Hisense Wins Bidding for Majority Stake in Slovenian Peer

Hisense Electric Co., a Chinese manufacturer of home appliances, has won the bidding to take over a majority stake in Slovenian peer Gorenje d.d.

After mulling three offers and considering factors that included price offered and deal feasibility, Gorenje selected Hisense as “the best bidder,” accepting its offer of 12 euros ($14.23) per share for a 50% stake plus one share of the Slovenian company, according to a Gorenje statement. This offer values the company at around 293 million euros.

The Hisense offer values Gorenje shares 76% higher than the Ljubljana-listed company’s closing price the previous day. The information sent Gorenje’s shares soaring by 64% to 11.2 euros on Thursday.

Citing a report from Slovenian newspaper Delo, Bloomberg reported that the other two bidders both were also Chinese appliance-makers — Haier Electronics Group Co. Ltd. and Hefei Meiling Co. Ltd.

Gorenje has been seeking funders ever since Japan’s Panasonic Corp., one of its shareholders, abandoned plans in 2016 to take over the firm and decided a year later not to extend two commercial agreements with the Slovenian company.

Gorenje’s net profit plummeted 84% to 1.3 million euros last year, but Gorenje projects the figure will reach 8.1 million euros this year.

Shares of Shanghai-listed Hisense edged up 0.58% on Thursday.

Contact reporter Coco Feng (renkefeng@caixin.com)