Trakcja S.A. and PRKiI S.A. announced the merger plan

Two companies specializing in modernization of railway lines, and building civil engineering and power grid facilities announced a plan to establish one entity. Pursuant to applicable laws, the merger plan was published to inform the market and shareholders.

The merger of Trakcja S.A. (the Overtaking Company) with the Acquired Company - Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych SA will take place by way of transferring the entire property of the Acquired Company to the Overtaking Company, i.e. merger through acquisition within the meaning of Article 492(1)(1) of the Code of Commercial Companies and Partnerships.

The decision on the merger and reorganisation was made in order to improve management of the Trakcja Group and to eliminate some part of the unnecessary processes, which will also allow to reduce operating costs and increase the management efficiency. The merger of the companies will also result in some financial savings in the administration and organisation areas thanks to the reduction in the number of the management and supervisory bodies within the Trakcja Group. In the long run, the goal of the merger is to improve coordination of operating activities and unify business processes.

The plan of reorganization in the aforementioned scope results from internal analyses conducted by the Company, which indicate that the merger of the Company with PRKiI will allow faster achievement of a beneficial model of operation of the Trakcja Group both in financial and organizational terms. Other activities resulting in the merger of the Company with PRKiI shall take place on dates as provided in law regulations. Any possible, further activities aimed at simplifying the organisational structure of the Trakcja Group may take place at a later date.

The main subject of activity of Trakcja S.A. includes modernization of railway and tram lines, construction and modernization of traction networks and power supply systems, construction of electrical power engineering systems and remote control systems to control power supply for electric traction.

The main subject of activity of PRKiI includes comprehensive contracting of railway and tram lines, electric railway and tram traction networks, electrical power lines, viaducts, bridges and civil engineering facilities.

The merger shall be performed upon prior obtaining of all the necessary corporate consents as well as consents of the bond holders and banks. The merger plan and relevant documents can be viewed here.