Current report no 21

Dated 28.12.2011

 

Westa ISIC S.A.
Société anonyme
Registered office: 412F, route d’Esch, L-1471 Luxembourg
R.C.S. Luxembourg: B 150.326 (the “Company”)

 

 

Sale of Techkomplekt LLC

 

WESTA ISIC S.A. (the “Company” or the “Group”) informs that, on 27 December 2011 the Board of Directors of the Company decided to sell 100% shares in its Ukrainian subsidiary, TECHKOMPLEKTLLC following an agreement with a strategic buyer. Another Group subsidiary, INDUSTRIAL ENERGY SYSTEMS LLC (logistics and warehousing), which was owned by TECHKOMPLEKTLLC, will be transferred to WESTA-DNEPR JSC and WESTA INDUSTRIAL LLC prior to the sale and therefore remain in Group’s ownership. The transaction is planned to be completed by 31 December 2011.

TECHKOMPLEKTLLC, incorporated on 31 December 2003, is a specialized procurement and trading company. The sale is in line with the Company’s strategy to focus on the core activity of SLI batteries production and optimize operational expenses. Following the transaction, raw materials will be procured directly by production companies, WESTA-DNEPR JSC and WESTA INDUSTRIAL LLC, and sales of goods will be realized through an established network of specialized dealers and wholesale traders.

As of the transaction date, the total assets and the total borrowings of TECHKOMPLEKTLLC will amount to approximately USD 140 mn and USD 121 mn, respectively. According to the management estimates, the transaction will not have a material effect on the Company’s operations and will improve the financial standing and the capital structure of the Group.

Deal value and other commercial details remain undisclosed until the transaction completion and finalization of settlements.

 

Legal grounds: Art. 56.1 in connection with article 56.6 of the Act of 29 July 2005 on the public offering, conditions governing the introduction of financial instruments to organised trading system and on public companies.