The Management Board of KGHM Polska Miedź S.A. announces that on 20 May 2005 the Company acquired – based on a purchase-sales agreement between KGHM Polska Miedź S.A. (the buyer) and KGHM Metale S.A. (the seller ) – 4 296 shares of Przedsiębiorstwo Handlowo - Produkcyjne "MERCUS" - spółka z o.o., having a nominal value of PLN 565.55 per share and a total nominal value of PLN 2 429.6 thousand.
KGHM Metale S.A. is 100% owned by KGHM Polska Miedź S.A.
The total purchase price at which the shares of PHP "MERCUS" - spółka z o.o. were purchased is PLN 12 003.0 thousand. The carrying amount of the shares acquired in the accounts of KGHM Metale S.A. as at 30 April 2005 was PLN 13 557.8 thousand.
The assets acquired represent 38.35% of the share capital of PHP "MERCUS" - spółka z o.o. and grant the right to the same number of votes. As a result of this transaction KGHM Polska Miedź S.A. owns 100% of the shares of PHP "MERCUS" - spółka z o.o.
These shares were purchased entirely in cash. Payment for the acquired shares will be carried out in two instalments: instalment I in the amount of PLN 8 000.0 thousand on 20 May 2005, and instalment II in the amount of PLN 4 003.0 thousand on 9 September 2005. KGHM Polska Miedź S.A. acquired these assets using its own internal funds.
The assets acquired are of a long term, equity investment nature.
The criteria used for describing the assets as significant is that the financial assets acquired by KGHM Polska Miedź S.A. represent over 20% of the share capital of PHP "MERCUS" - spółka z o.o.
This transaction concludes the process of acquiring the shares of PHP “MERCUS” – spółka z o.o. from KGHM Metale S.A., which was aimed at increasing the role of PHP “MERCUS”- spółka z o.o. as a logistics-supply center for KGHM Polska Miedź S.A.