Current report no. 23/2016

Date of drawing-up the report: 27 June 2016

Abbreviated name of issuer: CIECH S.A.

Subject: Memorandum of understanding regarding a transfer of rights and obligations 

Legal basis: Art. 56 section 1 point 2 of the Act on Offering – current and periodic information

The Management Board of CIECH S.A., with a registered office in Warsaw (“the Issuer”), with reference to current report no. 10/2015 of 13 May 2015, concerning the conclusion by the subsidiary of the Issuer – CIECH Soda Polska in Inowrocław (“CSP”) - with Kompania Węglowa S.A. in Katowice (“KW”) of power coal sale agreement (“Sale Agreement”), announces that on 27 June 2016, a memorandum of understanding was concluded (“MoU”) between CSP and KW and Polska Grupa Górnicza Sp. z o.o. in Katowice (“PGG”), whereby KW transferred, at the consent of CSP,  all of the rights and obligations under the Sale Agreement to PGG. 

The other provisions of the Sale Agreement remain unchanged.

The conclusion of the MoU is connected with the acquisition by PGG of the enterprise of KW.

The criterion for considering the Agreement to be a significant agreement: § 2 section 1 point 44 letter b) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information (…) – the value of the agreement exceeds 10% of the value of revenues from sale of the capital group of the Issuer for a period of the last four financial quarters.

Legal basis: Art. 56 section 1 point 2 of the Act of 29 July 2005 on Public Offering (…) and § 5 section 1 point 3, with reference to § 2 section 1 point 44 letter b) of the Regulation of the Minister of Finance of 19 February 2009 regarding current and periodic information (…).

Signatures of the Company's representatives:

Artur Osuchowski – Member of the Management Board

Artur Król – Member of the Management Board