The purchase price of the coking plant has been established by the parties at PLN 350 million. At the beginning of July 2016 ARP and Silesia, in accordance with the Term Sheet, shall pay the advance payment in the amount of PLN 200 million into the JSW account. However, before the purchaser shall pay an advance on account of JSW, parties must meet all established in the Term Sheet conditions precedent to the transaction, which include, among others, the positive result of the Private Investor Test or obtaining corporate approvals.
Also Investment Agreement must be signed, which is to include, among others, records concerning the rules for re-acquisition by the JSW Group of the Victoria coking plant, if in the future the divestment decision is taken by ARP and Silesia.
The core business of WZK Victoria is production of coke and coal derivatives. The company is currently the largest in the country and the major European producer of foundry coke of the highest mechanical strength parameters. WZK Victoria also produces metallurgical and industrial coke. The total production capacity amounts to 500 thousand tons per year.
