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Kruk S.A. M&A Activity 2016

Oct 28, 2016

5678_rns_2016-10-28_40acb8e2-6fa0-4812-a6ca-b0c336b64c01.html

M&A Activity

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Current Report No. 101/2016

Date: October 28th 2016

Subject: Accepting an offer to acquire shares in a company operating onthe Italian market

Legal basis: Art. 17.1 of MAR - Inside information

Text of the report:

The Management Board of KRUK S.A. ("KRUK", the "Issuer") announces thaton October 28th 2016 it was notified that the existing shareholders hadaccepted an offer to acquire shares in a company operating on theItalian market of debt portfolio management (the "Company"). Pursuant tothe offer, the Issuer will acquire a total of 100% of the shares free ofany encumbrances and free of any third-party rights (the "Shares"). TheCompany consolidated revenue in 2015 amounted to EUR 2,2m (PLN 9,5m, astranslated at the mid-rate quoted by the National Bank of Poland forOctober 28th 2016).

The acquisition of the Shares will be in line with the KRUK Group'sstrategy announced for 2015-2019, under which the KRUK Group will seekto grow also through acquisition projects.

The parties have agreed that the Share purchase agreement will be signednot later than November 21st 2016. The agreement will be announced bythe Issuer promptly after its execution in another current report.