Brussels, 3 November 2016, 5.30 p.m.

REGULATED INFORMATION [Royal Decree 14/11/2007]

SAPEC GROUP - PRESS RELEASE

SAPEC ENTERS INTO NEGOTIATIONS FOR THE SALE OF ITS AGRO BUSINESS (AB)

As already announced, the company initiated some time ago, with the collaboration of Lazard Madrid, a strategic study about the future of its Agrobusiness, fully held by its subsidiary Sapec Portugal SGPS SA (the AB sector). After receiving some preliminary indications of interest, the company received several firm offers for the purchase of its AB on 1 November.

Having analysed and studied these offers today, Sapec's Board of Directors (BD) considers that the best option both for the future of AB and for the company and its shareholders is the sale of the entire business.

At the end of today's meeting, the BD therefore decided to enter into negotiations to that end, beginning this Friday 4 November.

AB's recurring EBITDA for the period 01/07/15 to 30/06/16 amounted to 39.5 M€. The offers presented by the candidates value this business in an amount equal to 11 to 12 times its recurring EBITDA (enterprise value), minus the net debt and other adjustment items considered by the candidates (on this day the overall amount of which is estimated to be of about 140 M€).

The company intends to expeditiously conclude these negotiations and expects to reach a final agreement during November. This agreement will be subject to the customary regulatory approvals.

The company intends to strengthen its other activities in Portugal and Spain and, once the transaction has been completed, to distribute to its shareholders a substantial part of the cash received, under specific terms and timing still to be analysed.

The company would like to draw attention to the fact that the negotiations are just starting and that the figures above are merely indicative and need to be confirmed, none of which can be considered certain at this stage.

For any additional information, kindly contact:

Mr. Antonio Marques

Tel: + 351 213 222 777

E-mail: investorsrelations@sapec.pt

Sapec SA published this content on 03 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 04 November 2016 16:02:05 UTC.

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