China's Qumei in $630 mln bid for Norway furniture maker Ekornes

OSLO, May 23 (Reuters) - China's Qumei Home Furnishing Groupon Tuesday made an all-cash bid for Norway's Ekornes, valuing the Oslo-listed furniture maker at 5.1 billionNorwegian crowns ($630.75 million), the companies said in ajoint statement.

The board of Ekornes unanimously recommended the bid of 139Norwegian crowns per share, a premium of 18 percent aboveWednesday's close.

"After the first approach from Qumei more than a year ago,the board and management have spent significant time and effortsto assess this strategic opportunity," Ekornes said.

"We have been impressed by Qumei's ability to developsuccessful products and marketing concepts and we see greatpotential for Ekornes to continue its success under this newownership," it added.

Shareholders owning 25.7 percent of Ekornes have givenpre-acceptance, Ekornes said.

Best known for its "Stressless" furniture brand, Ekornes'revenues fell by 2 percent to 3.08 billion Norwegian crowns in2017, while its net profit, hit by a negative currency effects,fell by 38 percent to 200.5 million crowns.

By 0711 GMT, shares of Ekornes traded 16 percent higher forthe day at 137 Norwegian crowns, just shy of the 139 crownsoffer price.($1 = 8.0856 Norwegian crowns)(Reporting by Terje Solsvik. Editing by Jane Merriman)