INDUSTRIAL MILK COMPANY S.A. - Completion of acquisition of an Agricultural Enterprise

POLISH FINANCIAL SUPERVISION AUTHORITY

UNI - EN REPORT No 2 / 2013

Date of issue: 2013-02-14

Short name of the issuer

INDUSTRIAL MILK COMPANY S.A.

Subject

Completion of acquisition of an Agricultural Enterprise

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, following issuance of current report No. 18/2012 dated December 13, 2012, a Subsidiary of Industrial Milk Company S.A. acquired the Ukrainian company leasing 38 000 hectares of land (with 5-7 years lease term) and possessing grain storage capacities of 115 000 mt in the Chernihiv region of Ukraine in close proximity to one of the existing clusters of Industrial Milk Company S.A. The deal was finalized on December 28, 2012. The value of the deal is USD 39 800 000. 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 deal includes all assets of the acquired company and among the above-mentioned assets also incorporates the livestock division of 6 000 heads, including 2 000 milking cows, sugar mill (the processing capacity is 2 000 tons of sugar beet/day) as well as some other minor assets. The acquired company organically fits into the existing business model of Industrial Milk Company S.A. because of the advantageous location of its land bank, the similar crop mix structure and available storage capacities which are sufficient to meet the requirements of this land bank. Thereby at present the farming land bank of Industrial Milk Company S.A. totals 120 700 hectares. The storage capacities of Industrial Milk Company S.A. total 338 000 t. 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

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)

[phone] [phone]

(phone number) (fax)

(e-mail) (web site)

(NIP) (REGON)

SIGNATURE OF PERSONS REPRESENTING THE COMPANY

Date Name Position / Function Signature

2013-02-14 Ievgen Osypov CEO Ievgen Osypov

2013-02-14 Oleg Todchuk IRO Oleg Todchuk