ABO-Group Environment NV

Major Shareholding Notification • Sep 23, 2014

Frank De Palmenaer, majority shareholder ABO-Group, announces unique transaction

23 September 2014 – 8 p.m

Ghent – Following the share merger of 15 September 2014, on his own initiative, Frank De Palmenaer announced an unprecedented transaction. In order to increase the free float and the liquidity, from 24 September 2014 to 30 November 2014, majority shareholder and CEO of ABO-Group Frank De Palmenaer is selling an unspecified part of his participation in the group through the stock exchange. After the closure, 90 % of the proceeds from the sale are to be introduced into ABO-Group as capital increase in return for the issue of just one new share in the company. This transaction dilutes Frank De Palmenaer's interest in the company.

Frank De Palmenaer introduces 90 % of the proceeds into the company

From 24 September 2014 to 30 November 2014, Frank De Palmenaer, main shareholder with 92.5 % of the shares and CEO of ABO-Group, intends to offer for sale on or outside the stock exchange an unspecified number of shares at a price not set in advance. Then, by no later than the end of 2014, 90 % of the amount raised will be introduced into the ABO-Group through a capital increase, in return for the issue of just one new share in the company's capital. In this way, in his capacity of private individual, Frank De Palmenaer wishes to reinforce the free float and the group's liquidity. This operation is a means of reducing the discrepancy of the intrinsic value and the market value of the shares.

"This transaction is unique and unprecedented on the stock exchange. The operation releases resources for ABO-Group. The group's expansion as a whole is an absolute top priority, and the benefits this transaction offers will ensure that all stakeholders, including employees, are set to gain from it", says Frank De Palmenaer, CEO of ABO-Group.

Frank De Palmenaer explains more of the various diverse advantages of this unique transaction: "In the first place ABO-Group itself comes out of this transaction strengthened. Specifically, this means that the group will be able to achieve its ambitious growth plan with a capital injection in a shorter time than foreseen and continue to build on the future. In addition, the transaction naturally impacts the value of ABO-Group and its shares, which means a significant plus for present and future shareholders. For me as main shareholder too, this transaction is an absolute plus for the future, since it reinforces the group's growth and development opportunities. The group comes out stronger with strengthened capital and scope for implementing an ambitious growth plan. Lastly, these prospects also ensure that our group, with its 350 motivated employees, will continue to develop in a dynamic environment both in our home markets (BE/NL/FR) and in international growth markets."

Transaction terms

Besides the "management notices" to the FSMA by Frank De Palmenaer as CEO of ABO-Group, which are published on the FSMA website, the results of the transaction, both on the stock market and outside it, are to be announced on 1 December 2014. At the same time, within the framework of shareholders' transparency obligations, if the sales exceed a 5% threshold of total voting rights, Frank De Palmenaer will make a transparency statement to the FSMA and to the company. Subject to approval by the shareholders, the capital increase will actually take place between 1 and 31 December 2014 during the Extraordinary General Meeting for all shareholders.

Before investing in ABO-Group shares, investors are advised to read the ABO-Group listing document released on 31 July 2014 and available on the ABO-Group (www.abo-group.eu) website, and to consult the 2014 half-year report.

For more information:

Frank De Palmenaer T +32 (0)496 59 88 99 frank@de-palmenaer.be

Derbystraat 255, Maaltecenter Blok G, B-9051 Gent (SDW), Belgium