Jeronimo Martins — M&A Activity 2016

Jul 27, 2016

Jerónimo Martins SGPS, S.A.

Relevant Fact

Following the announcement to the capital markets on the 28th of April, Jerónimo Martins, SGPS, S.A. (the Company) hereby informs that it has reached an agreement with Sociedade Francisco Manuel dos Santos B.V. (SFMS) for the sale to the latter of 100% of its wholly owned subsidiary Monterroio - Industry & Investments B.V. (Monterroio).

The transaction was approved by the Board of Directors, adopted at its meeting of the 26th of the current month, once assessed the interest of the Company, in compliance with the provisions of Article 410, paragraph 6, of the Portuguese Commercial Companies Code and having been issued prior favourable opinion by the Audit Committee.

We have now entered the final phase of the negotiations of the Sale and Purchase Agreement. It is foreseen that the transaction, which is expected to involve the receipt by the Company of a total consideration of 310 million euros, will complete in the coming weeks.

Monterroio is the Company's sub-holding for manufacturing and services businesses comprising its subsidiaries JMD – Distribuição de Produtos de Consumo, Lda. and Jerónimo Martins – Restauração e Serviços, S.A. as well as the stakes in Unilever Jerónimo Martins, Lda. (45%), Gallo Worldwide, Lda. (45%), Hussel Ibéria – Chocolates e Confeitaria, S.A. (51%) and Perfumes e Cosméticos Puig Portugal – Distribuidora, S.A. (27.545%).

Lisbon, July 27, 2016