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The Extraordinary General Meeting of Grupa LOTOS S.A. has approved increasing the Company's share capital by issuing new shares. The proceeds will be used to finance the Company’s strategy, which envisages further investments to increase the Gdańsk refinery's complexity and step up hydrocarbon production.

Finance

The Extraordinary General Meeting of Grupa LOTOS S.A. has approved increasing the Company's share capital by issuing new shares. The proceeds will be used to finance the Company’s strategy, which envisages further investments to increase the Gdańsk refinery's complexity and step up hydrocarbon production.

New shares will be offered to the Company’s existing shareholders. LOTOS expects to raise approximately PLN 1bn through the issue.

How much money is obtained from the issue will depend on the macroeconomic climate, capital market conditions, demand for the shares, and final terms and conditions of the offering.

As part of the approved share capital increase, Grupa LOTOS will offer PLN 55m new ordinary shares to its existing shareholders, who will hold pre-emptive rights to acquire the shares. The record date for the pre-emptive rights is November 18th 2014.

The shareholders holding Company shares as at the end of the record date (i.e. November 18th 2014) will have pre-emptive rights to acquire the new shares. Each share held as at the end of the record date will confer one pre-emptive right.

The number of new shares which may be subscribed for in exercise of one pre-emptive right will be calculated and announced by the Company's Management Board prior to opening of the subscription. The pre-emptive rights exercise period will be specified in the prospectus for the new shares, which will be prepared and, following its approval by the Polish Financial Supervision Authority, published in connection with the public offering of the new shares.

LOTOS is a vertically-integrated oil company whose business is material to Poland’s energy security. LOTOS operates in exploration, production and crude oil processing, as well as in sale and distribution of a wide range of petroleum products. The Group is successful on wholesale and retail markets. The company has been listed on the Warsaw Stock Exchange since 2005.

Through its subsidiaries (LOTOS Petrobaltic S.A., LOTOS Exploration and Production Norge AS, and AB LOTOS Geonafta), it also operates in the Baltic Sea, the North Sea and the Norwegian Sea, as well as in Lithuania, where it is involved in exploration for and production of natural gas and crude oil from onshore and offshore fields. LOTOS is the second largest producer of hydrocarbons in Poland, and the only Polish operator extracting crude oil and natural gas from offshore deposits in the Baltic Sea. It is also the largest crude oil producer in Lithuania. In line with its strategy until 2015, LOTOS intends to increase its production to 1.2 million tonnes of crude oil per annum.

Communications Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, tel. (+48) 58 308 87 31, (+48) 58 308 83 88, (+48) 58 308 83 55, e-mail: media@grupalotos.pl

Legal disclaimer:

This material is not for release, publication or distribution, directly or indirectly, in the United States, Australia, Canada, and Japan.

This material has been prepared by Grupa LOTOS S.A. (“Company”) for information purposes only, it does not constitute an offer or a solicitation of any offer, and it is not to be relied on in making investment decisions to buy the Company's securities. This material is not a promotional or advertising material within the meaning of Art. 53 of the Polish Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies. As the resolution to increase the Company's share capital through the issue of new shares (“Shares”) on a pre-emptive basis was passed by the Company's Extraordinary General Meeting on September 8th 2014, the Company will apply to the Polish Financial Supervision Authority (“PFSA”) for approval of a prospectus for the issue (“Prospectus”), which will be the sole legally binding document containing information about the Company and the public offering of the Shares in Poland (“Offering”). The Company may proceed with the Offering only after the Prospectus has been approved by the PFSA. The Prospectus will be made available to the general public in compliance with applicable laws.

This material is not a recommendation within the meaning of the Minister of Finance’s Regulation on information which constitutes recommendations concerning financial instruments or their issuers, dated October 19th 2005.

This material (and any information presented herein) does not contain or constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States, Australia, Canada, Japan or in any other jurisdiction. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (“US Securities Act”), and they may not be offered or sold in the United States unless they are registered under the US Securities Act or unless they are exempted from the registration requirements of the US Securities Act. The securities will not be publicly offered in the United States.

To the extent permitted by applicable laws, the Company makes no representations, declarations or warranties, express or implied, as to, and no reliance should be placed on, the reliability, accuracy, completeness and correctness of any information and opinions contained herein. Any forward-looking information, opinions and statements contained herein may be subject to change without notice.

The forward-looking statements contained herein involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, levels of activity or achievements to be materially different from future results, levels of activity or achievements expressed or implied by these forward-looking statements. The Company assumes no obligation to publicly update or revise any forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.

The Company's refining and output targets and any other business outlook information contained herein should be read as the Company's internal targets and should not be construed as financial projections or forecasts, as they may or may not prove achievable.

The Company, its subsidiaries and other related entities disclaim all liability for any loss or damage arising from the use of this material, any part hereof or any information contained herein, or for any loss or damage arising otherwise in connection with this material.