Information on the conclusion of agreements between TIM SA, 3LP SA and mLeasing Sp.z o.o

Date

2016-11-25

Current report no.

51/2016

Management Board of TIM S.A. with its registered office in Wrocław notifies that on 24 November 2016 the companies TIM SA and 3LP SA with its registered office in Siechnice whose 100 % shares are held by TIM SA, received information about signing by mLeasing sp. z o.o. with its registered office in Warsaw of agreements the parties to which are the following: TIM SA, a subsidiary of TIM SA, i.e.– 3LP SA _hereinafter ” 3LP SA _ and mLeasing Sp. z o.o., dated as at 24.11.2016, comprising a leaseback transaction, the subject of which is the acquisition by mLeasing sp. z o.o. from 3LP SA of assets _ equipment of the Logistics Centre in Siechnice –Mecalux racking, with the total value of PLN 1,053,500 gross _ in words: one million fifty three thousand and five hundred zlotys _ and giving them for use to 3LP SA, whereas the lease agreements were concluded for the period of 72 months.

Due performance of obligations under the aforementioned lease agreement is secured by:

a) an agreement on conditional acquisition of rights and obligations under lease agreements concluded between TIM SA, 3LP SA and mLeasing sp. z o.o., dated 24.11.2016, whereby TIM SA agreed to acquire the rights and obligations under the above lease agreements in case the company 3LP SA is in default with payment of at least two of lease instalments and despite a written call for payment from mLeasing Sp. z o.o. _ hereinafter : “ Call” _ does not settle the amounts due within the period prescribed in such a Call, provided that TIM SA receives from mLeasing Sp. z o.o. a notification of entering into the rights and obligations and as of the date of its receipt – will automatically assume the rights and obligations of 3LP SA under the aforementioned lease agreement, provided that the aggregate liability of TIM SA under the above agreement is limited to the amount of PLN 594,692.16 _ in words: five hundred ninety-four thousand six hundred ninety-two zlotys and 16/100 _. The information on signing by mLeasing Sp. z o.o. of the above agreement was received by TIM SA on 24 November 2016.

b) blank promissory note guaranteed by TIM SA with the proviso that the amount of the TIM SA guarantee is limited to the amount of PLN 594,692.16 _ in words: five hundred ninety-four thousand six hundred ninety-two zlotys and 16/100.

The remaining scope of the agreements contains provisions typical for this type of contracts.

Agreements referred to above are successive agreements concluded in this scope by 3LP SA and TIM SA with mLeasing sp. z o.o. . TIM SA informed about previous agreements concluded between TIM SA, 3LP SA and mLeasing sp. z o.o. in current report No. 37/2016 published on 18.07.2016.

The value of assets _equipment of the Logistics Centre in Siechnice_ from all agreements previously concluded between TIM SA, 3LP SA and mLesing Sp. z o.o. regarding the purchase and leaseback of equipment of the Logistics Centre in Siechnice amounts to PLN 16,770 thousand zlotys gross _ in words: sixteen million seven hundred and seventy thousand_ gross.

The total value of the surety by TIM SA of the above agreements amounts to almost 15 million _ in words: fifteen million zlotys_

Management Board of TIM SA notes that it decided that the above information is confidential within the meaning of the definition contained in Art. 7 MAR due to the fact that the total amount of the potential liability of TIM SA towards mLeasing sp.z.o.o., being the result of the surety of the above agreements, may have an impact on future financial results of TIM SA.

2016-11-25, Artur Piekarczyk – Member of the Board
2016-11-25, Anna Slobodzian-Pula – Member of the Board