INDUSTRIAL MILK COMPANY S.A. - Acquisition of the agricultural company in Ukraine (18/2012)

| | POLISH FINANCIAL SUPERVISION AUTHORITY | | | | | | | | | | |
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| | | | | UNI - EN REPORT No | 18 | / | 2012 | | | | |
| | Date of issue: | 2012-12-13 | | | | | | | | | |
| | Short name of the issuer | | | | | | | | | | |
| | INDUSTRIAL MILK COMPANY S.A. | | | | | | | | | | |
| | Subject | | | | | | | | | | |
| | Acquisition of the agricultural company in Ukraine | | | | | | | | | | |
| | Official market - legal basis | | | | | | | | | | |
| | Art. 56 ust. 1 pkt 1 Ustawy o ofercie - informacje poufne | | | | | | | | | | |
| | Unofficial market - legal basis | | | | | | | | | | |
| | Contents of the report: | | | | | | | | | | |
| | The Board of Directors of Industrial Milk Company S.A. informs that a Subsidiary of Industrial Milk Company S.A. entered into the deal to acquire the Ukrainian company leasing 38 000 hectares of land and possessing grain storage capacities of 115 000 mt. All land is located in Chernihiv region in close proximity to the existing cluster of Industrial Milk Company S.A. in that region. This is the region with optimal climate conditions and sufficient level of warmth and precipitations. All land is the chernozem soil of the highest quality. 3 000 hectares of land are sown with winter wheat which is in a good condition. The land is made ready for the sowing campaign of 2013. The crop mix structure which was applied previously in this land is similar to that which IMC has used. The deal includes two silos with the storage capacities 75 000 t and 20 000 t respectively and floor storage capacity 20 000 t which are located in Chernihiv region in close proximity to the fields of the company. Both silos are
equipped with grain dryers (drying capacities are 2000 t/day and 1 000 t/day respectively). The silos have all necessary infrastructures, including railway terminals. The target company is completely self-sufficient with regard to agricultural machinery. The deal also includes the livestock division of 6 000 heads, including 2 000 milking cows. The planned deal will be the biggest acquisition of Industrial Milk Company S.A. since completion of IPO. The land bank of the target company is practically equal to the land bank of Industrial Milk Company S.A. in May, 2011. At the moment the appropriate permission of the Antimonopoly Committee of Ukraine is obtained with regard to the above-mentioned deal. The acquisition is expected to be legally finalized by the end of 2012. Conclusion of an agreement will be announced according to the fact of the state registration. The Company will inform on official closing of acquisition, according to the legal requirements, in particular according to § 5 sec . 1 point 11 of
Regulation of the Ministry of Finance dated February 19, 2009 on current and periodic information published by the issuers of securities and on conditions of recognition of information required by the law of a non-member country as equal. Legal basis: Article 56 sec. 1 point 1 of the Act of 29 July 2005 on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading, and Public Companies (Journal of Laws No. 184, item 1539, as amended) ? Inside Information | | | | | | | | | | |
| | Annexes | | | | | | | | | | |
| | File | Description | | | | | | | | | |

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY

| | | INDUSTRIAL MILK COMPANY S.A. | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | (fullname of the issuer) | | | | | |
| | | INDUSTRIAL MILK COMPANY S.A. | | Spożywczy (spo) | | | |
| | | (short name of the issuer) | | (sector according to clasification of the WSE in Warsow) | | | |
| | | L-2310 | | Luxembourg | | | |
| | | (post code) | | (city) | | | |
| | | Avenue Pasteur | | 16 | | | |
| | | (street) | | (number) | | | |
| | | +352 27478488 | | +352 27478489 | | | |
| | | (phone number) | | | (fax) | | |
| | | (e-mail) | | | (web site) | | |
| | | (NIP)
| | | (REGON) | | |

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY