Transactions between related entities

Friday, 03 June, 2005

The Management Board of KGHM Polska Miedź S.A. announces, based on information received on 2 June 2005, that in the course of reorganisation of the Group and in following a program for an exchange of functions between the companies DOLNOŚLĄSKA FABRYKA MASZYN ZANAM-LEGMET Sp. z o.o. and INOVA Centrum Innowacji Technicznych Sp. z o.o. (indirect subsidiaries of KGHM Polska Miedź S.A.), INOVA Sp. z o.o. and DFM ZANAM-LEGMET Sp. z o.o. entered into transaction a based on:

  • the sale of selected assets of the mechanical section of INOVA Sp. z o.o. to DFM ZANAM-LEGMET Sp. z o.o., and
  • the sale of selected assets of the electrical section of DFM ZANAM-LEGMET Sp. z o.o. to INOVA Sp. z o.o.

The following assets are included in this sales transaction: selected intangible assets, property, plant and equipment, copyrights, documentation and low value off-balance sheet items and inventories. The purpose of this transaction is to increase the homogeneity of functions of these companies.

As a result of this sale DFM ZANAM-LEGMET Sp. z o.o. will receive approximately PLN 0.8 million, and will incur the obligation of paying INOVA Sp. z o.o. approximately PLN 3-3.5 million.