(Il Sole 24 Ore Radiocor) - Milano, 24 apr - The Swedish manufacturer of home appliance Electrolux announced plans for a 9 billion crown rights issue.

"The rights sssue, supported by AB Electrolux largest shareholder, Investor AB, is intended to finance and accelerate Electrolux group's profitable growth initiatives and expedite the achievement of its financial targets, as well as strengthen the group's balance sheet," it said.

Electrolux said that 1.0-1.5 billion crowns of the gross proceeds will support the strategic partnership with Midea Group in refrigeration manufacturing and sales, and laundry manufacturing in North America.

Meanwhile, 2.0-2.5 billion crowns of the gross proceeds will support plans to improve efficiency across its organization over the next two years, including optimization of the global manufacturing footprint.

The initiative is expected to generate gradual cost efficiency improvements, reaching approximately 1.4 billion crowns in year three, it added.

The move is expected to result in a net reduction of approximately 3,000 employees globally over the same period.

Electrolux expects to report total negative non-recurring items of approximately 2.2 billion crowns over the next two years.

The group expects to invest approximately 0.6 billion crowns over three years to implement the manufacturing optimization plan.

Electrolux has an objective that the net debt/EBITDA ratio should not exceed 2.0 times to preserve balance sheet strength and its investment-grade credit profile. As of December 31, 2025, the group had a net debt/EBITDA ratio of 3.0 times.

Adjusting net debt/EBITDA for the rights issue, the net debt/EBITDA ratio would have improved to close to 2.0 times,.

it noted.

(RADIOCOR) 24-04-26 11:22:40 (0287) 5 NNNN