Friday, 26th April 2019, Ljubljana

Divestment process of Gorenje Surovina completed

Divestment process of Gorenje Surovina completed

Consistently with our strategy of focusing on our core activity of manufacturing and marketing of domestic appliances and divestment of select companies from our non-core business area, Gorenje signed in December last year a sale and purchase agreement for the company Gorenje Surovina and its subsidiaries. With fulfilment of all suspensive conditions and transfer of the acquisition price, the sale and purchase process with the company Eko Surovina was successfully completed today.

Hence, as of today, the company Eko Surovina, a part of the company Rastoder d.o.o., is the new owner of Gorenje Surovina and its subsidiaries Kemis–BH (Bosnia and Herzegovina), Kemis Valjevo (Serbia), Gorenje Surovina RECE (Slovenia), and Gorenje Surovina RECE (Croatia). The said company was selected as the best bidder in the sale process conducted last year. With the fulfilment of suspensive conditions that included obtaining consent by competition protection agencies in Slovenia, Bosnia and Herzegovina, and Serbia, and with the receipt of the purchase amount, the sale process was officially completed today.

Gorenje Surovina renders waste treatment services in the territory of Slovenia and, with a partner from the industry, offers comprehensive solutions to local communities and households for all types of waste. Along with its subsidiaries active in collection and processing of waste and extraction of secondary raw materials, it has over 350 employees.

As noted by Izet Rastoder, the owner of the company Rastoder d.o.o., upon signing of the agreement, he intends to further develop Surovina and expand its activities in all fields of its operations, since the decision to acquire Surovina was based on many synergies with Rastoder's own core activity, especially regarding packaging processing.

Today's transaction is an important part of Gorenje d.o.o. divestments planned for this year. We have recently divested our shares in affiliated companies Gorenje Projekt d. o. o. and GGE Netherlands. Focusing on the core activity and divestment of non-core businesses remain our strategic policy that we shall continue to pursue in the future.