Current Report No.: 42/2019

Date of preparation: 11.10.2019

Abbreviated name of the Issuer: CIECH S.A.

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

Subject: A review of strategic options

Contents of the Report:

In reference to Current Report No. 34/2018 of 5 December 2018, in which CIECH S.A. (the "Issuer" or "Company") informed on the adoption of the CIECH Group’s Strategy for 2019-2021 (the “Strategy”) and Current Report No. 8/2019 of 19 March 2019, in which the Company advised on the initiation of a detailed review of options in terms of changes in the corporate and organisational structure and the structure of assets of the CIECH Group, the Company informs that on 11 October 2019, the Management Board of the Company (the “Management Board”) adopted a resolution to initiate a review of strategic options  to support further development of the CIECH Group in relation to the  Resins business area, currently operating as part of a direct subsidiary of the Issuer, i.e. CIECH Sarzyna S.A. (“CIECH Sarzyna”). 

The initiation of the review of strategic options in relation to the Resins business area is aimed at achieving the main goal under the Strategy, i.e. to create an effective and fully diversified chemical holding company generating long-term positive value for shareholders. This goal will also be achieved by value building involving reorganisation of the asset portfolio and focusing on areas of key importance for the operations of the CIECH Group.

CIECH Sarzyna is currently operating in two business areas: the Agro business area and the Resins business area, and there are plans, with analyses underway, for separating the Resins business area to an individual company - CIECH Żywice sp. z o.o., a direct subsidiary of the Issuer, as a result of which CIECH Sarzyna would conduct operations as part of the Agro business area, while CIECH Żywice sp. z o.o. would operate under the Resins business area. The decision on the adoption of the separation plan will be made in the coming weeks and the Issuer will publish the relevant information in a separate announcement.

In the course of the process of reviewing strategic options, the Management Board of the Issuer has decided to commence cooperation with transaction, financial, legal and tax advisors.

At the same time, the Management Board would like to emphasise that no decision has been made in terms of selection of any particular strategic option, and there is no certainty whether or not, and if so – when, such a decision will be taken in the future. The Management Board will publish information on the course of the process of reviewing strategic options in accordance with applicable law.

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).