Current Report No. 13/2016 dated 23 May 2016
The creation of the reserve having a significant impact on the consolidated financial result of the Capital Group Wirtualna Polska Holding S.A. in the second quarter of 2016.
Legal basis: Article 56 sec. 1 item 1 of the Act dated 29 July 2005 on Public Offering, the Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies.- confidential information
Contents of the report:
The Board of Wirtualna Poland Holding S.A. (The "Company") announces the intention to approach a one-time cost associated with the partial early settlement of the purchase of shares in Allani sp.o.o. in the amount of 1,1 million zloty and associated with this the revaluation of commitments to purchase non-controlling interests in Domodi sp. o.o. of 1.1 million zloty in the second quarter of 2016.
These operations result from the annex signed on 20 May 2016 to the contract of sale of shares and further cooperation of 6 October 2015 (the "Agreement"), which the Company announced in the current report No. 30/2015. In connection with the resignation of the board Manager Allani sp. o.o. the parties agreed on payment on behalf of 2.8 million zloty, which is an earlier settlement of 50% premium growth in enterprise value due to him. Earlier settlement of half of the bonus will significantly reduce the total value of the contingent consideration for the Manager originally specified in the Agreement.
However, as a result of termination of the Manager his function in Allani sp. o.o., Capital Group ceases to recognize a provision for the remaining 50% of the conditional remuneration due to him at the time and recognize it in the amount of 2.4 million zloty once in the position "Costs associated with the public offering, purchases of subsidiaries and restructuring" in the second quarter of 2016.
At the same time, in connection with the laid down in the investment agreement with minority shareholders Domodi sp. o.o. their participation in payments on behalf of the Manager Allani sp. o.o., reduction of conditional remuneration on his behalf will result in the recognition in the second quarter of 2016 of 1.1 million zloty of financial expenses in the position "Update of the commitment to repurchase of non-controlling interests".
Legal basis: Art. 56 sec. 1 point 1 of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies.
Signatures of the individuals representing the Company:
Jacek Świderski – President of the Management Board/Chief Executive Officer
Elżbieta Bujniewicz – Belka – Member of the Management Board/Chief Financial Officer