Conclusion by the Issuer’s subsidiary an agreement for purchase of locomotives

Report: 20/2023
Date of publication:13.06.2023 / 13:57
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The Management Board of UNIMOT S.A. with its registered office in Zawadzkie (the “Issuer”) announces the conclusion on 13 June 2023 by the Issuer’s subsidiary Olavion sp. z o.o. (hereinafter: “Olavion”) with Newag S.A. (hereinafter: “Newag”) an agreement concerning the acquisition of locomotives (the “Agreement”).

Under the Agreement, Olavion will acquire 4 locomotives for a total maximum price of PLN 74 million. Delivery of these locomotives will take place within a period of 16 to 17.5 months from the date Olavion informs Newag that corporate and financing approvals have been obtained.

In addition, Olavion has been granted an option to purchase 16 additional locomotives. The purchase price has been guaranteed for orders placed in 2023, and an indexation scheme has been defined for subsequent years. The Issuer Group can exercise the above option until the end of 2025 and is not obliged to purchase all locomotives included in the purchase option pool. The decision to purchase additional locomotives will be made after considering the economic justification for their purchase. Assuming that the option to purchase all 16 locomotives is exercised, the total expenditure on these 16 locomotives would be up to PLN 304 million at prices prevailing in 2023.

The subject of the parties’ cooperation will also be the provision of scheduled maintenance services by Newag for a 24-month warranty period.

The agreement has been concluded subject to all corporate approvals and financing by Olavion. The Issuer estimates that the fulfilment of the above conditions, for the first 4 locomotives, will take place by the end of July 2023.

As a result of the agreement, Olavion will increase the number of electric locomotives, which will allow it to scale up its operations and strengthen its market position. Securing the ability to purchase further locomotives will allow the Issuer to respond flexibly to changing market and Group demand for rolling stock.

The Issuer considered this information confidential due to the value of the agreement, as well as the potential impact of the transaction on the economic, asset and financial situation of the Issuer and its Group.