ZPC Otmuchow : Current report No. 37/2016

Otmuchow, December 20th 2016

Current report no 37/2016

Subject: Information about a decision to participate in the Issuer's share capital increase of subsidiary PWC Odra SA.

In reference to the current report No. 34/2016, dated 24th November 2016, on revised assumptions of strategic directions of development of the Group Management Board of ZPC Otmuchów (the Issuer, the Company) announces that on 20th December 2016. The Supervisory Board decided on approval of the acquisition by the Company of not more than 17 375 261 shares of the new issue in the subsidiary PWC Odra SA (PWC Odra). Issuer explains that the decision on whether to increase the share capital PWC Odra through the issue of 19 775 261 shares of the new issue will be decided by the Extraordinary General Meeting of PWC Odra on 22th December 2016. The increase in share capital will be realized through the issue of registered preference shares voting (one share will entitle to two votes) and the issuance of these shares is to be carried out in a closed subscription by offering shares only to existing shareholders PWC Odra pre-emptive right. The issue price at which the Company will acquire newly issued shares of PWC Odra will be one PLN per share, and the shares are to be paid in cash.

Issuer reminds that in accordance with the updated strategic objectives assets including shares PWC Odra were excluded from the planned divestment process.

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