Current Report No.: 1/2020

Date of preparation: 02.01.2020

Abbreviated name of the Issuer: CIECH S.A.

Subject: Registration of the division of a subsidiary of the Issuer

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

Report:

The Management Board of CIECH S.A. (the ”Company” or “Issuer”), in reference to Current Report No. 34/2018 of 5 December 2018, in which the Company informed on the adoption of the CIECH Group Strategy for 2019-2021 (the “Strategy”), Current Report No. 8/2019 of 19 March 2019, in which the Company informed on the commencement of the review of options of changes to the corporate and organisational structure and the structure of assets of the CIECH Group, Current Report No. 42/2019 of 11 October 2019, in which the Company informed on the commencement of the review of strategic options with regard to the business area of Resins, Current Report No.  45/2019 of 31 October 2019, in which the Company advised on the adoption of the plan for the division of CIECH Sarzyna by direct subsidiaries of the Issuer, i.e. CIECH Sarzyna S.A. (“CIECH Sarzyna”) and CIECH Żywice sp. z o.o. (“CIECH Żywice”), by transferring the business area of Resins (“BU Resins”) to CIECH Żywice (the “Division Plan”), and Current Report No. 47/2019 of 25 November 2019 regarding the adoption of the concept of the reorganisation of the CIECH Group, informs that on 2 January 2020 the District Court in Rzeszow, 12th Commercial Division of the National Court Register (the “Court of Registration) registered the division of CIECH Sarzyna (the “Division”).

The division involved the separation of BU Resins into CIECH Żywice.

As advised by the Company in its Current Report 45/2019 of 31 October 2019, the division was aimed at achieving the main goal under the Strategy, i.e. creating an effective and diversified chemical holding generating long-term positive value for shareholders. The Division Plan enables further steps as part of the review of strategic options that has been initiated for BU Resins. 

At the same time, following the registration of the Division, the Court of Registration registered the increase of the share capital of CIECH Żywice, from PLN 55,500 (in words: fifty-five thousand and five hundred Polish Zlotys) by PLN 3,678,350 (three million six hundred and seventy-eight three hundred and fifty Polish Zlotys), i.e. up to PLN 3,733,850 (three million seven hundred and thirty-three eight hundred and fifty Polish Zlotys), by creating 73,567 (seventy-three thousand five hundred and sixty-seven) shares of nominal value of PLN 50 each, all of which were allocated to the Issuer.

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).

Signatures of the Company’s representatives:

Dawid Jakubowicz – President of the Management Board 

Mirosław Skowron - Member of the Management Board