7/2019 - Information on the sale of a company from the Trakcja Capital Group and transfer of rights and obligations

With reference to report 25/2018, the Management Board of Trakcja PRKiI S.A. (‘Issuer’) inform that today it learned about the conclusion of the contract (‘Agreement’) by AB Kauno Tiltai based in Lithuania, which belongs to the Issuer’s Capital Group regarding:

• to sell the shares in the subsidiary UAB “Plėtros investicijos“ with its registered office in Lithuania (“Company”), in which AB Kauno Tiltai holds 100% of shares;
• to transfer the rights and obligations, including the right to the receivables, of the Loan Agreements made between AB Kauno Tiltai and the Company.

The company's buyer is a Lithuanian company - SPV-39 UAB (the "Buyer"). There are no capital ties between AB Kauno Tiltai and the Buyer.

The total transaction amount is EUR 2.97 million (ie approx. PLN 12.8 million).

The conditions necessary for the performance of the contract include obtaining the required approvals from banks and public institutions.

The transfer of ownership rights will take place after fulfillment of the terms of the Agreement, no later than August 31, 2019.

The Issuer's Management Board has decided to publish this information, as the transaction has an impact on the organizational optimization of the Trakcja Capital Group and has a significant impact on the Group's financing structure, including its debt reduction. The Issuer will inform about the final execution of the contract in a separate report.

Legal basis:

Art. 17 MAR