Legal basis:
Art. 17(1) of MAR - Inside information

Further to Current Report No. 43/2017 of October 5th 2017, the Management Board of Grupa Azoty S.A. (the 'Company') announces that on October 12th 2017 the Supervisory Board of PDH Polska S.A., a subsidiary of the Company and of Grupa Azoty Zakłady Chemiczne Police S.A., adopted a resolution approving changes to the 'PDH propylene production unit and related infrastructure' project and the acquisition of non-current assets necessary to implement the project in its revised scope.

Under the resolution, the Supervisory Board of PDH Polska S.A. approved a modification to the 'PDH propylene production unit and related infrastructure' project which consists in adding a polypropylene unit to the project scope. The Supervisory Board also gave its approval for the acquisition of non-current assets for the modified project, and issued a favourable opinion on the Management Board's proposal that the General Meeting approve the modifications to the project and acquisition of non-current assets necessary to implement the project.

In addition, approval was given to change the project's name from 'PDH propylene production unit and related infrastructure' to 'Police Polymers'. The scope of the Police Polymers project includes PDH unit, PP unit, auxiliary units and interconnections, handling and storage terminal.
The project budget is EUR 1.27bn net and includes:

  • capital expenditure to be incurred: EUR 983.80m,
  • capital expenditure incurred to date: EUR 25.33m,
  • financing costs during the construction phase, PDH Polska's operating costs and additional capital requirements related to the project financing model: EUR 263.15m.
To implement the project, additional working capital financing needs to be secured, in the form of a EUR 72m credit facility.

The project schedule:
a) start of construction − late 2019;
b) construction completion - late 2022;
c) settlement of the investment project - late 2023.

The Supervisory Board of PDH Polska S.A. also approved the updated project finance model for Police Polymers:
a) equity - 50%
b) external capital - 50%.

At the same time, the Supervisory Board of PDH Polska S.A. issued a favourable opinion on the Management Board's proposal to increase the share capital of PDH Polska S.A. by PLN 124,000,000 through the issue of 12,400,000 new shares with a par value of PLN 10 per share. The new shares will be acquired in a private placement after the required corporate decisions and approvals are obtained and PDH Polska S.A. submits:
a) to Grupa Azoty Zakłady Chemiczne Police S.A. an offer to subscribe for shares with a par value of PLN 30m,
b) to Grupa Azoty S.A. an offer to subscribe for shares with a par value of PLN 94m.

In view of the favourable opinion issued by the Supervisory Board, the Management Board of PDH Polska S.A. will propose that the General Meeting approve the increase of the PDH Polska S.A. share capital on the terms and conditions set out above.

Legal basis: Article 17(1) of Regulation (EU) 596/2014 of the European Parliament and of the Council of April 16th 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 (OJ EU of June 12th 2014, No. L 173/1, as amended).

Grupa Azoty SA published this content on 13 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 October 2017 11:29:01 UTC.

Original documenthttp://tarnow.grupaazoty.com/creport-46-2017.html

Public permalinkhttp://www.publicnow.com/view/3E0F67847DD2BE05E331E3E42920E269DF256307