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Kruk S.A. M&A Activity 2016

Jun 30, 2016

5678_rns_2016-06-30_2d3d18ed-0031-4bf7-b106-8019757182fe.html

M&A Activity

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Current Report No. 71/2016

Date: June 30th 2016

Subject: Decision by the Romanian Competition Council concerning aninvestment project

Legal basis: Art. 56.1.1 of the Public Offering Act - Information update

Text of the report:

Further to Current Report No. 45/2016 of May 20th 2016, the ManagementBoard of KRUK S.A. (the Company) announces that today it was notified ofa decision issued on June 27th 2016 by the Romanian Competition Councilapproving the proposed Agreement under which the Company's subsidiaryProsperoCapital S.a r.l. is to purchase, respectively, from BancpostS.A., ERB New Europe Funding II B.V. and ERB Retail Services IFN S.A.three debt portfolios with a combined nominal value of EUR 597m (PLN2.6bn, as translated at the rate quoted by the National Bank of Polandfor May 20th 2016) (the Agreement). Romanian Competition Councilclearance of the concentration is a necessary condition for consummatingthe Agreement, which will take place after the Price payment.