23/06/2016
Current Report No. 64/2016: Execution of a significant debt assignment agreement with Banca Monte dei Paschi di Siena S.p.A.
The Management Board of KRUK S.A. (the Issuer, the Company) announces that on June 23rd 2016 ItaCapital s.r.l. of Milan (ItaCapital, the Buyer), a subsidiary of the Issuer, having closed the negotiations with Banca Monte dei Paschi di Siena S.p.A. of Siena (the Bank) and having obtained the necessary corporate approval, signed a debt assignment agreement with the Bank (the Agreement).
Acting in accordance with Art. 57.1 of the Act on Public Offering [...], dated July 29th 2005, and Par. 2.1 of the Minister of Finance's Regulation on the type of information that could prejudice legitimate interests of issuers [...], dated April 13th 2006, on June 21st 2016 the Company delayed the publication of information on the negotiations and their circumstances as its publication could adversely affect the progress or outcome of the negotiations and thus prejudice the Company's legitimate interests, and also because the Company was required to obtain the necessary corporate approval.
The Agreement provides for the acquisition of unsecured consumer debts with a total value of approximately EUR 352 m (PLN 1.5bn, as translated at the mid-exchange rate quoted by the National Bank of Poland for June 23rd 2016), for approximately EUR 50.6m (PLN 221.6m, as translated at the mid-exchange rate quoted by the National Bank of Poland for June 23rd 2016) (the Price).
The Agreement is subject to a condition precedent that the debts covered by the Agreement will be assigned to the Buyer upon payment of the Price. Pursuant to the Agreement, the Price will be paid by June 28th 2016.
The Agreement provides that it may be terminated early if the agreed Price is not paid. The Agreement does not provide for any contractual penalties.
Other terms and conditions of the Agreement do not differ from those commonly used in agreements of such type.
The value of the Agreement exceeds 10% of the Group’s revenue for the last four financial quarters, which is the criterion for considering the Agreement as material.