The conclusion of a conditional agreement on the sale of the right of perpetual usufruct to real estate

Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (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.

The Management Board of "Polimex-Mostostal" SA having its registered address in Warsaw at al. Jana Pawła II  12 (hereinafter referred to as the "Company") hereby informs that, on 28 September 2016, Naftoremont-Naftobudowa Spółka z ograniczoną odpowiedzialnością, the Issuer’s subsidiary, acting as the Seller, and VIVARTIS Spółka z ograniczoną odpowiedzialnością having its registered address in Warsaw, acting as the Buyer, concluded a conditional agreement on the sale of the right of perpetual usufruct to real estate the subject matter of which is the right of perpetual usufruct to real estate located at ul. Smulikowskiego in Warsaw, the district of Śródmieście, for which the District Court for Warszawa-Mokotów in Warsaw, X Land and Mortgage Register Division, keeps a land and mortgage register under Kw No. WA4M/00235779/2 (hereinafter referred to as the “Real Estate”) (hereinafter referred to as the “Conditional Agreement”).

In accordance with the Conditional Agreement, the total price for the Real Estate amounts to PLN 5,150,000.00 net plus VAT due at the current rate of 23% (hereinafter referred to as the “Price”).

The agreement transferring the ownership of the Real Estate (hereinafter referred to as the "Transfer Agreement”) will be concluded depending on whether the condition stipulated in the Conditional Agreement is met, i.e. whether documents issued by all encumbrancers holding security interests in the form of mortgages, including their permits for release from all mortgages, as well as the removal of the mortgages from land and mortgage registers are submitted. In case this condition is not fulfilled, the Buyer is entitled to claim damages on general terms starting from 30 November 2016. Further, the Transfer Agreement will be concluded provided that the capital city of Warsaw does not exercise its right of preemption.

The Parties set the date for the conclusion of the foregoing Transfer Agreement on 30 November 2016 at the latest with the proviso that the aforementioned conditions should be fulfilled first.

The Agreement is signed as part of the operational restructuring communicated by the Company in current report no. 130/2012 concerning the conclusion of an agreement on the rules for servicing the Company's financial debt with financial creditors and constitutes the performance of the Company's obligations resulting from the annex to the agreement on the rules for servicing the financial debt about which the Company informed in detail in current report no. 150/2013 of 25 October 2013.