Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. („JSW”, „Company”, „Buyer”), in reference to previously-published current reports on the planned acquisition of an organized part of a business of the hard coal mine Kopalnia Węgla Kamiennego „Knurów-Szczygłowice” („ZORG”) reports that the conditions precedent described in current report no. 9/2014 of 10 April 2014 have been fulfilled. Accordingly, on 31 July 2014 an agreement to acquire ZORG was executed by and between Kompania Węglowa S.A. with its registered office in Katowice („KW”, „Seller”) and JSW.
ZORG as the object purchased by JSW entails tangible and intangible assets used to mine hard coal in the hard coal mine Kopalnia Węgla Kamiennego „Knurów-Szczygłowice” whose production capacity is 3.8 million tons of coal per annum, including approximately 40% coking coal, economically-viable resources of 1.26 billion tons, recoverable reserves of 375.1 million tons, including 119.7 million tons in the currently-binding concessions.
The purchase price for ZORG is PLN 1 490 000 000 (say: one billion four hundred ninety million zloty).
The asset acquisition is being funded from external financing in the form of a private bond issue in the amount of USD 163,750,000 and PLN 700,000,000 and the Company’s own funds.
JSW reports that there are no ties between the Buyer, the persons managing and supervising JSW and the Seller, the persons managing and supervising KW.
Prior to its purchase by JSW, the line of business of ZORG was the production of hard coal. JSW does not intend to change its line of business and will continue the current business activity of ZORG.
The criterion forming the basis for recognizing the agreement to acquire ZORG to be an asset of significant value is the purchase price for ZORG, which exceeds 10% of JSW’s equity.
Legal grounds: § 5 section 1 sub-section 1) and § 7 of the Finance Minister’s Regulation of 19 February 2009 on the current and periodic information conveyed by securities issuers and the conditions for recognizing the information required by the regulations of a non-member state as being equivalent.