Ciech S.A.

Regulatory Filings • Oct 11, 2019

Text of the report:

In reference to Current ReportNo. 34/2018 of 5 December 2018, in which CIECH S.A. (the "Issuer"or "Company") informed on the adoption of the CIECHGroup's Strategy for 2019-2021 (the "Strategy") andCurrent Report No. 8/2019 of 19 March 2019, in which the Company advisedon the initiation of a detailed review of options in terms of changes inthe corporate and organisational structure and the structure of assetsof the CIECH Group, the Company informs that on 11 October 2019, theManagement Board of the Company (the "Management Board")adopted a resolution to initiate a review of strategic optionstosupport further development of the CIECH Group in relation to theResinsbusiness area, currently operating as part of a direct subsidiary of theIssuer, i.e. CIECH Sarzyna S.A. ("CIECH Sarzyna").

The initiation of the review ofstrategic options in relation to the Resins business area is aimed atachieving the main goal under the Strategy, i.e. to create an effectiveand fully diversified chemical holding company generating long-termpositive value for shareholders. This goal will also be achieved byvalue building involving reorganisation of the asset portfolio andfocusing on areas of key importance for the operations of the CIECHGroup.

CIECHSarzyna is currently operating in two business areas: the Agro businessarea and the Resins business area, and there are plans, with analysesunderway, for separating the Resins business area to an individualcompany - CIECH Żywice sp. z o.o., a direct subsidiary of the Issuer, asa result of which CIECH Sarzyna would conduct operations as part of theAgro business area, while CIECH Żywice sp. z o.o. would operate underthe Resins business area. The decision on the adoption of the separationplan will be made in the coming weeks and the Issuer will publish therelevant information in a separate announcement.

In the course of the process ofreviewing strategic options, the Management Board of the Issuer hasdecided to commence cooperation with transaction, financial, legal andtax advisors.

At the same time, the Management Board would like toemphasise that no decision has been made in terms of selection of anyparticular strategic option, and there is no certainty whether or not,and if so - when, such a decision will be taken in the future. TheManagement Board will publish information on the course of the processof reviewing strategic options in accordance with applicable law.

Legal basis:Legal basis: Article 17.1 of the Regulation of the European Parliamentand of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse(the Market Abuse Regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of theEuropean Union L No. 173, p. 1).