The Board of Directors of WESTA ISIC S.A. informs that Ukrainian subsidiaries of the Group signed the intragroup agreements, which comprise of the leasing of all of the technologically essential property, plant and equipment from WESTA-DNEPR JSC, WESTA INDUSTRIAL LLC and INDUSTRIAL ENERGY SYSTEMS LLC to WESTA CAR BUTTERY LTD.

These leasing agreements are part of the reorganization of the Group’s Ukrainian operations, the key element of which is the transfer of all major business activities to the single Ukrainian legal entity, WESTA CAR BUTTERY LTD. The further steps of the reorganization plan are the following:

These actions are expected to be performed till the end of October 2014, but adjustments and optimization of business processes and corporate governance will continue thereafter.

Reorganization of operations is expected to reduce future SG&A expenses and improve overall corporate governance of the business. It will involve Ukrainian legal entities only and will have no direct effect on consolidated financial statements of WESTA ISIC S.A.  

 

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 organized trading system and on public companies.