On 16 February 2015, ZUE S.A. signed a letter of intent concerning the acquisition of 70% of shares in RAILWAY gft Polska sp. z o.o. of Cracow (“RAILWAY”).

 

RAILWAY acquires rights and obligations under the contracts and agreements signed by ThyssenKrupp GfT Polska Spółka z o.o. (“ThyssenKrupp GfT Polska”) of Cracow, a member of the German ThyssenKrupp AG concern as part of which it was responsible for the sale of materials for the construction and repair of tram and railway tracks in the entire territory of Poland and the provision of services and know-how concerning rail communication and construction techniques. In September 2014, ThyssenKrupp AG decided to terminate the rail infrastructure activities in Poland. Previously, it had decided to terminate such activities in Germany. The intended acquisition will enable the ZUE Group to continue, through RAILWAY, the activities which have so far been conducted in Poland by ThyssenKrupp GfT Polska.

 

The scope of the activities conducted by RAILWAY will be the same as that of ThyssenKrupp GfT Polska. The company will continue to supply rails, sleepers, accessories, aggregate, etc.

 

The transaction will be executed if consent is given by the President of the Office of Competition and Customer Protection (“UCCP”) or there are no circumstances in which the consent is not required.

The process of obtaining the consent is pending.

 

ZUE S.A. intends to acquire the majority stake in RAILWAY to pursue its strategic goals and to enable the ZUE Group to develop its trade and production activities.

 

RAILWAY offers a full range of tram and railway rails, (prestressed concrete, wooden and steel Y) sleepers with attachments, special systems (including Rheda City, Rheda 2000), crossovers, crossover parts, any type of track accessories, materials for the construction of substructure (breakstone or aggregate), antivibration mats, thermite welding materials as well as technical and design advisory services.

 

Given the termination of activities by ThyssenKrupp GfT Polska, ZUE S.A. and ThyssenKrupp GfT Polska signed the contract of 27 January 2015 for the company’s purchase of the track structure materials such as tram and railway rails, track accessories, sleepers, etc. for the total of PLN 19.5m. In addition, the Company undertook to buy other track structure materials of the total value of approx. PLN 40.4m by 31 January 2016.