Ciech

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Current Report No.: 11/2019

Conclusion of an annex to the agreement for the supply of process steam to a subsidiary of the Issuer

Current Report No.: 11/2019

Date of preparation:
 01.04.2019

Abbreviated name of the Issuer: CIECH S.A.

Subject: Conclusion of an annex to the agreement for the supply of process steam to a subsidiary of the Issuer

Legal basis: Art. 17.1 of the MAR – inside information

Text of the Report:

The Management Board of CIECH S.A. with its registered office in Warsaw (the “Issuer” or “Company”), in reference to current reports nos. 37/2016 dated 18.11.2016, 30/2018 dated 27.11.2018, and 37/2018 dated 28.12.2018, herewith informs that on 01.04.2019, a subsidiary of the Issuer - CIECH Soda Romania S.A. based in Romania (“CSR”), entered into an annex (the “Annex”) to an agreement for the supply of process steam (the “Agreement”) with S.C. CET Govora S.A. in composition bankruptcy based in Romania (“CET”).

Pursuant to the Annex, the Parties agreed on the price of the processes steam for a period of 21 months, i.e. from 01.04.2019 to 31.12.2020.

The estimated value of the Agreement, in the period from 01.04.2019 to 31.12.2020, consisting of the price of the process steam and the cost of CO2 certificates, is approximately RON 366 000 000, which is equivalent to PLN 330 644 400, according to the exchange rate determined by the National Bank of Poland (NBP) on the date of the Annex. Moreover, the Parties extended the deadline for the negotiations of the price formula for the supply of process steam in 2021-2026 until 31.12.2020. The parties agreed that in the event of failure to agree on the price formula on or before 31.12.2020, the Agreement would terminate by virtue of law on 31.12.2020.

The parties also modified the notice period, by agreeing that in the period from 01.04.2019 to 31.12.2020, they would have the right to terminate the Agreement with a 3-month notice period, whereas starting from 01.01.2021, the period of notice would be 9 months, i.e. as stipulated in the Agreement.


Legal basis: Article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1) (the “MAR”).

Signatures of the persons representing the Company:

Artur Osuchowski – Management Board Member

Mirosław Skowron – Management Board Member


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