WEG S.A. ('WEG') (BM&FBOVESPA: WEGE3 / OTC: WEGZY), in compliance with CVM Instruction 358/02, hereby informs its shareholders and the market in general that it has signed a Stock Purchase Agreement (SPA) with CG Power Systems Belgium NV ('CG Group'), in the amount of US $ 37,000,000 (thirty-seven million dollars), for the acquisition of its Power and Distribution Transformers Company, CG Power USA Inc., located in Washington, Missouri, USA.

WEG further states that the conclusion of the transaction will only take place after compliance with certain contractual conditions that are usual in this type of transaction, which is expected by 31 July 2017.

CG Power USA Inc. specializes in manufacturing, assembly, supervision and commissioning services of Power and Distribution Transformers up to 60 MVA - 161 kV. The three manufacturing plants occupies an area of 26,300 square meters and have 452 employees. In fiscal year 2016/17, Company's net revenue was US $ 128 million.

The acquisition of CG Power USA Inc. will not trigger withdraw rights as the transaction does not fit into any of the situations foreseen in Article 256 of Law 6404/76, amended by Law N. 10.303/01. The amount paid in the acquisition does not represent a relevant investment for the purchaser or does the average price of each share fits any of the hypothesis described in section II of the previously mentioned article.

WEG will keep the market informed on future events related to the transaction.

Paulo Polezi

Investor Relations Officer

Please, see here the Material Fact sent today

Please, see here the Release sent today

WEG SA published this content on 21 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 July 2017 15:00:10 UTC.

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