Amica : Conclusion of a Significant Agreement between the Issuer and a related party
January 09, 2018 at 07:39 am
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The Management Board of 'Amica Spółka Akcyjna' with its registered office in Wronki (hereinafter: the Issuer), acting pursuant to Article 17 (1) of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse ('MAR' Regulation), informs that the Issuer and the Issuer's subsidiary - Amica Handel i Marketing Sp. z o.o. with its registered office in Poznań (in which the Issuer holds 100% of shares entitling to 100% of votes at the Shareholders' Meeting) - today entered into the Cooperation Agreement - Trade Agreement (hereinafter: 'Agreement'), whereby Amica Handel i Marketing Sp. z o.o. will become, as from 01 January 2018, the exclusive distributor of products on the territory of Poland and in the countries, where no sales are conducted by other foreign subsidiaries of the Issuer (so-called direct markets).
The conclusion of the Agreement is the culmination of the process of separating individual organizational units (gradual separation of production functions from marketing and sales functions), launched by Amica Group in 2011, in order to increase the efficiency and transparency of operations on the Polish and selected foreign markets, in connection with increasing the scale of operations and expanding the geographical coverage of sales of goods and household appliances offered by the Issuer's Group.
The Issuer will manufacture and market the products on 'business as usual basis', while Amica Handel i Marketing Sp. z o.o. will organize further operational sales on the Polish market and on direct markets (including the logistics of goods, whose production is outsourced by 'Amica S.A.'), whereas the Issuer's individual subsidiaries based in foreign countries will continue to be responsible for the implementation of marketing and sales operations on these markets and for obtaining goods (white label) directly from suppliers (under individual contracts).
In addition, the Issuer will play the role of the corporate centre i.e. it will perform (i) an executive role for the strategic activities carried out in Amica Group and (ii) a supervisory role to ensure effective coordination of key initiatives undertaken within Amica Group.
Detailed terms of the Agreement (concluded for an indefinite period) do not differ from the terms commonly used for this type of contracts on the market. The Agreement has not been concluded subject to a time limit or a condition, nor does it provide for the application of contractual penalties.
Information on conclusion of the Agreement has been classified by the Issuer as inside information, as defined in Article 7 of the MAR Regulation, due to the significant value of the Agreement by reason of the Issuer's scale and its significance for the Issuer. The value of 10% of the Issuer's equity was assumed as the significance criterion (based on the previous results, the Issuer estimates that the annual total value of sales on the Polish market and direct markets will amount to PLN 1,160,000,000 (in words: one billion one hundred and sixty million zlotys).
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Amica SA published this content on 09 January 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 09 January 2018 12:39:04 UTC.
Original documenthttps://www.amica.pl/en/company/investor-relations/news/publication/1284-Conclusion_of_a_Significant_Agreement_between_the_Issuer_and_a_related_party
Public permalinkhttp://www.publicnow.com/view/FFBF613EDAEDFC367B0986734621B87E17DF3173
Amica Wronki SA is a Poland-based manufacturer and wholesaler of household appliances. The Companyâs production is divided into four segments: Heating equipment, consisting of ovens, cookers and gas panels; refrigeration equipment, consisting of refrigerators and freezers; Washing equipment, consisting of washing machines; and Other, consisting of cooker hoods, dishwashers, microwave cookers and small household appliances. It provides a product support services. The Company sells its products mainly in Poland, Germany, the Russian Federation, Nordic countries, the Czech Republic, Slovakia and the United Kingdom, among others. As of December 31, 2011, the Company operated 12 subsidiaries, including Amica International GmbH, based in Germany, Amica Commerce sro, based in the Czech Republic, Gram Domestic A/S, based in Denmark, Hansa ooo, based in the Russian Federation, Sidegrove Holdings Ltd, based in Cyprus and Amica Far East Ltd, based in Honk Kong, among others.