Sonae SGPS

M&A Activity • May 25, 2021

Maia, 25th May 2021

(Translation from the Portuguese original)

Announcement

Sonae SGPS, SA hereby announces that its subsidiary Sonae MC, SGPS, S.A. ("Sonae MC") has reached an agreement to sell its 50% share capital in Modelo – Distribuição de Materiais de Construção S.A. ("Maxmat") to Cimentos Estrada Pedra SGPS, Lda., an entity fully owned by Building Materials Europe ("BME Group"), which already holds the remaining 50% of the share capital of Maxmat.

Maxmat is a hard discount retailer in the do-it-yourself, construction, bath and garden segment, operating a network of 30stores, supported by more than 500 employees and delivered a turnover of €116 million in 2020. The transaction is expected to generate net proceeds of approximately €65 million to Sonae MC.

After a long and successful partnership, Sonae MC and BME Group agreed to the terms of this transaction, which will enable Sonae MC to further strengthen its balance sheet and continue to actively manage its portfolio, while capitalising on an attractive transaction to drive shareholder value. Sonae MC and BME Group will maintain a close relationship going forward, while Maxmat will continue to leverage on Sonae MC's footprint to support its ambitious growth plan and drive synergies between the parties.

The completion of the transaction is subject to the satisfaction of customary conditions for a transaction of this nature (including the required merger control clearance) and closing is expected to occur in the third quarter of 2021.

The Representative for Market Relations,

Head Office

For further information, please contact the Investor Relations Department at Sonae:

PATRÍCIA VIEIRA PINTO Head of Investor Relations / Sonae T. +351 220 104 724 // E. pavpinto@sonae.pt

www.sonae.pt