Current report no 63 / 2018

Delayed confidential information about the start of negotiations

The Management Board of Budimex S.A. (“Budimex”) hereby discloses the information, the disclosure of which was delayed pursuant to Article 17.4 of the 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 the Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (MAR), i.e. announces that on 7 August 2018 Budimex started negotiations with the representatives of PG Energetyka sp. z o.o. and Raven 9 sp. z o.o. regarding a potential disposal transaction of the shares Budimex has in Elektromontaż-Poznań S.A. with its registered office in Poznań, entered into the register of entrepreneurs kept by the District Court Poznań – Nowe Miasto i Wilda in Poznań, 8th Commercial Division of the National Court Register under the No KRS 0000060700 and Biuro Inwestycji “Grunwald” S.A. with its registered office in Warsaw, ul. Stawki 40, 01-040 Warsaw, registered in the register of entrepreneurs kept by the District Court Poznań – Nowe Miasto i Wilda in Poznań, 8th Commercial Division of the National Court Register under the No KRS 0000603895.

The negotiations commenced when the representatives of the entities interested in the acquisition of the companies indicated that they are willing to complete the transaction, paying the total price of PLN 109,539 thousand, specifying at that moment that the transaction will be in part covered with a bank loan and that their bank has expressed preliminary intent to participate in the funding of the potential transaction.

Each of the parties had the right to withdraw from the negotiations. During the negotiations, the parties were discussing the key financial and legal parameters of the potential transaction, yet the very start of negotiations did not mean that the potential transaction will be completed.

In light of the decision to start the negotiations, Budimex found such information to be vital from the investor’s perspective and therefore considered it appropriate to classify the information as confidential. It is the assessment of Budimex that Budimex has a justified interest in delaying the disclosure of information about the start of negotiations as its disclosure could have violated the legally justified interest of Budimex. The decision on starting the negotiations was only to set the direction and the final outcome was conditioned upon a series of factors.