Undertaking of reorganisation activities by the Issuer within the UNIMOT Capital Group

Report: 19/2022
Date of publication:11.05.2022 / 15:42
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The Management Board of UNIMOT S.A. (“the Company”, “the Issuer”), with its registered office in Zawadzkie, announces that on 11/05/2022 it commenced reorganisation activities within the UNIMOT Capital Group (“the Group”), aimed at preparing the Group’s structure for the acquisition of new assets, including the business of an independent logistics operator and the production and sale of bitumen, as a result of the intended transaction for the acquisition of 100% of shares in LOTOS Terminals Spółka Akcyjna, of which the Issuer informed in current report 2/2022 of 12 January 2022 (“the Transaction”).

The purpose of the Group’s reorganisation process is to prepare the Issuer for the management of new assets and to maintain the independence status of the various activities (in particular the fuel storage and import activities) by operating them under controlled, but acting as separate business entities, special purpose vehicles, which is part of the overall reorganisation activities and conditions within the implementation of the Transaction.

As part of the reorganisation process, the Issuer intends, in the first stage, inter alia, to discontinue its liquid fuels import and liquid fuels production activities (in terms of LPG) under its OPZ and WPC licences as of 30 June 2022 and then to continue these activities as of 1 July 2022. through its subsidiary UNIMOT Paliwa spółka z ograniczoną odpowiedzialnością (“UNIMOT Paliwa”), which already holds the OPZ licence required in this regard and intends to acquire the relevant WPC licence.

The continuation of the fuel import and fuel production activities (in terms of LPG) through the subsidiary secures the supply of liquid fuels for the entire Group on the same terms and conditions as before. The effect of the cessation of OPZ and WPC activities on the Issuer Group will be a reduction in the obligation to maintain the compulsory reserve of liquid fuels for the period from 1 July 2022 to 30 June 2023, resulting in a reduction in fuel storage costs during this period.

The transfer of the Issuer’s assets and operations to Unimot Paliwa is conditioned by obtaining a tax interpretation. Once this is obtained, further formal and legal steps will be subject to corporate approvals and separate current reports by the Issuer.

The Issuer considered the information on the commencement of the Group’s reorganisation to be confidential, taking into account the scope of activities undertaken in this regard and the significantly positive financial effects for the Group and the Issuer in the perspective of the next several months.

The Company’s Management Board emphasises that due to external market factors beyond the Company’s control, related to high volatility and uncertainty of the situation on the fuel market caused by the current political and economic situation, it is not in a position to estimate the final impact of a reduction in storage costs on the Group’s financial results.