Electrolux sets subscription price on nearly $1 billion rights issue (updated)

Electrolux AB

21/05/2026 20:42

Adds details and background paragraph 3 onwards

May 21 (Reuters) - Electrolux ELUXb.ST set a subscription price for its previously announced 9.1 billion Swedish crowns ($975.96 million) rights issue at 16.75 crowns per share, the company said on Thursday, in a bid to support its restructuring measures.

The appliance maker, which has struggled in the face of weak demand and cut-price competition, has been restructuring and focusing on more premium categories to try and lift profitability.

Last month, the Swedish company announced a first-quarter hit to results due to weak U.S. demand, a rights issue and a North American tie-up with Chinese rival Midea 000333.SZ.

The firm blamed a slump in U.S. demand as well as higher U.S. tariff costs as it swung to an operating loss of 266 million Swedish crowns ($29 million) in January-March from a year-earlier 452 million profit.

The announcement
plunged
 shares by 24% to their lowest in 17 years. The company said that the measures would result in about 3000 job cuts.

Morgan Stanley, SEB and Deutsche Bank will be underwriters for the issue, Electrolux said. The rights issue would be used  to fund the Midea partnership and other restructuring measures, it added.

($1 = 9.3242 Swedish crowns)

 (Reporting by Kanjyik Ghosh in Barcelona;
Editing by Nick Zieminski)

 ((Kanjyik.Ghosh@thomsonreuters.com;))