Current Report No.: 48/2022
Date of preparation: 21.12.2022
Abbreviated name of the Issuer: CIECH S.A.
Legal basis: Art. 17.1 of the MAR – inside information
Subject: Contracts and agreements executed by the Issuer and a subsidiary of the Issuer with Inowrocławskie Kopalnie Soli „SOLINO" Spółka Akcyjna.
Text of the report:
With reference to Current Report No. 39/2022 of October 27, 2022, the Management Board of CIECH S.A. (the “Issuer” or “CIECH”) informs that today the following contracts and agreements were executed among the Issuer, CIECH Soda Polska S.A. (the “Subsidiary”) and Inowrocławskie Kopalnie Soli „SOLINO" Spółka Akcyjna (“Solino”):
(hereinafter referred to as the “Contracts”).
The purpose of signing the Contracts is to ensure stable sources of brine supplies to the production plants of the Subsidiary until the end of 2035 under predictable terms and conditions, which is necessary for the maintenance of the current scale and continuity of operations by CIECH Soda Polska S.A. in subsequent years.
The parties also agreed on the scope and principles of investment expenses in order to enable Solino to deliver full volumes of brine, including the Subsidiary's participation in the investment Solino at the level of 2/3 of CAPEX, which is estimated by the Issuer at approx. PLN 220 million, to be spread evenly over time until the end of 2026. On the part of the Subsidiary, financing was secured by a corporate guarantee of its parent company, i.e. CIECH, while performance and obtaining financing, on the part of Solino, was also secured by a corporate guarantee of its parent company, i.e. PKN Orlen S.A. The brine volumes remain at similar levels to the current levels, which allows to ensure the continuity of operation and maintain the production scale at the current level.
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).
Signatures of persons representing the Company:
Dawid Jakubowicz – President of the Management Board
Kamil Majczak – Member of the Management Board