Current report 24/2013 (24.09.2013)
Title:
Conclusion of the agreement for delivery of 3.000 tractors
Legal basis:
Art. 56 sec. 1 point 2 of the Act on Public Offering – current and periodical information
Message:
The Management Board of URSUS S.A. hereby informs that on 24 September 2013 the Issuer concluded with the Ethiopian company Metals and Engineering Corporation (METEC) of Adama Agricultural Machinery Industry (AAMI) with the seat in Adama (Oromia, Ethiopia) the agreement for delivery of tractors, equipment for servicing centers and supply of spare parts for tractors.
On the basis of the concluded agreement, the Issuer will deliver 3.000 tractors in SKD and CKD form, in two instalments (each of 1.500 items), and will assure equipment for servicing centers and spare parts for tractors. The first supplies of tractors in the first stage of the agreement shall start at the turn of the second and the third quarter of the year 2014. Before deliveries of tractors the Issuer will supply equipment for at least one of the the buyer’s servicing centers. Under this agreement the Issuer will organize training for the buyer’s staff and will assure the technical support to the required extent. In the first stage the Issuer will supply tractors of 50, 80, 110, 140 and 180 HP. The date of starting the second stage of the agreement performance and all its details will be agreed by the parties by the end of September 2014. With regard to conclusion of the agreement for tractors delivery the parties expect to start cooperation concerning delivery of agricultural machines and devices.
The total amount of the agreement set as at the date of its conclusion is 90.000.000 USD.
Payment for the goods being subject of the agreement in the first stage will be executed by six irrevocable letters of credit opened consecutively by the buyer for the benefit of URSUS in Commercial Bank in Ethiopia and approved by the Issuer’s bank. The above-mentioned letters of credit will be insured as export credits in KUKE. Every letter of credit will be valid for 6 months. Operational support of the transaction will be provided by Bank Gospodarstwa Krajowego.
Method of payment for the goods being subject of the agreement in the second stage will be agreed by the parties after execution of deliveries in the first stage of the agreement. The parties expect that the payment will be made with funds obtained by the buyer from a loan or on the basis of the letter of credit, like in the first stage.
The relations between the parties regarding the concluded agreement are subject to the laws of Switzerland. The parties agreed that any dispute arising in relation to the agreement shall be solved by arbitration of the Zurich Chamber of Commerce.
Other provisions of the concluded agreement do not differ from the terms commonly used in this kind of agreements.
The agreement is considered material due to the fact that its total amount exceeds 10% of the Issuer’s equity.
The legal grounds of transmission of the present report are § 5 sec. 1 point 3 in connection with § 9 of the Regulation of the Minister of Finance dated 19 February 2009 regarding current and interim reports published by issuers of securities and the terms of finding as equivalent the information required under the laws of any non-member state (Journal of Laws, 2009, No. 33, point 259 with subsequent changes).
