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On October 15th 2014, the Minister of the State Treasury representing the State Treasury entered into an agreement with Grupa LOTOS S.A. for granting the support in the form of non-public aid of up to PLN 530m to finance the construction of a delayed coking unit (DCU) and auxiliary installations (EFRA Project). Under the Agreement, the State Treasury will subscribe for and acquire new issue shares of Grupa LOTOS by exercising its pre-emptive rights.

“It is a priority and responsibility of the Minister of State Treasury as the owner to consistently build the value of companies owned by the State Treasury. The project prepared by Grupa LOTOS is expected to generate tangible economic benefits and is in line with the Polish energy security strategy. By subscribing for new issue shares of Grupa LOTOS, the Minister of the State Treasury will act as a private investor, which is evidenced not only by the private investor test showing the viability of the Company’s investment project, but also by the fact that the project has been approved by a vast majority of the Company’s other shareholders,” said Rafał Baniak, Deputy Minister of the State Treasury.

“Thanks to the Ministry’s assistance, Grupa LOTOS will launch an investment project which is crucial to the implementation of its strategy in the downstream segment. The funds will allow us to substantially upgrade our production technology and improve operating efficiency of our refinery business by increasing the crude oil conversion ratio,” said Paweł Olechnowicz, President of the Management Board of Grupa LOTOS S.A. 

Execution of the Agreement means that the condition subsequent set forth in the issue resolution, adopted on September 8th, 2014 by the Extraordinary General Meeting of Grupa LOTOS, has not been satisfied. As a result, the Company may increase its share capital through the issue of new shares to be subscribed for on the terms and conditions set forth in the issue resolution.

Under the Agreement, the Minister of the State Treasury, having at its disposal the resources of the Business Restructuring Fund (Fundusz Restrukturyzacji Przedsiębiorców), has granted to Grupa LOTOS the support in the form of non-public aid of up to PLN 530m by way of subscribing for and acquiring new issue shares of the Company in exercise of pre-emptive rights held by the State Treasury. Grupa LOTOS will use the funds from the Business Restructuring Fund to finance one of the projects of key importance to the implementation of its strategy, i.e. the construction of a delayed coking unit (DCU) and auxiliary installations (EFRA Project).

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

Legal disclaimer:

This material has been prepared for promotional purposes only, it is not an offer or a solicitation of any offer, and it is not to be relied on in making any decisions on investment in the Company securities. The Prospectus which will be prepared in connection with the rights issue and public offering of Grupa LOTOS S.A. (“Company”) shares (“Shares”) (“Prospectus”), following its approval by the Polish Financial Supervision Authority, will be the only legally binding document containing information on the Company and the public offering of its Shares in Poland. The Prospectus will be made public in electronic form on the Company’s website (www.lotos.pl) and, for information purposes, on the website of Powszechna Kasa Oszczędności Banku Polskiego S.A. Oddział − Dom Maklerski PKO Banku Polskiego w Warszawie (www.dm.pkobp.pl)

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 of America, 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 may not be offered or sold in the United States of America unless they are registered, or exempt from the registration requirements, under the US Securities Act. The securities will not be offered to the public in the United States of America.

The Company, its subsidiaries and other related entities disclaim any 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.