Current Report 26/2012

Subject:

Establishment of the subsidiary with the seat on Balkans 

Legal Basis:

Current and periodical information

Contents of the report:

The Management Board of URSUS S.A. hereby announces that on 10 October 2012 in the Regional Court in Bijeljina (Bosnia and Herzegovina) was registered the limited liability company under the laws of Republika Srpska in Bosnia and Herzegovina (drustvo s ogranicenom odgovornoscu) withe the name Fabrika Traktora d.o.o.  The company has two shareholders URSUS S.A. and Bobar Group d.o.o., each of them holds 50% of shares in its share capital. 

The seat of the newly set-up company is the town Bijeljina located in Republika Srpska in Bosnia and Herzegovina. Duration of the company is unlimited and the main business activity of the company Fabrika Traktora d.o.o. will be manufacturing/ assembly on SKD basis of URSUS tractors.

Moreover, on 10 October 2012 URSUS S.A.  and the newly set up company Fabrika Traktora d.o.o. concluded the license agreement on use of the trademark URSUS for designation of the company, on use of the trademark URSUS for designation of agricultural tractors and spare parts for tractors and on use of the technical and construction  and after-sales documentation, as well as know-how of URSUS tractors, on the basis of which Fabrika Traktora d.o.o. received authorization to change its name to URSUS d.o.o.

Also on 10 October 2012, in connection with the licence agreement, the shareholders of Fabrika Traktora d.o.o. adopted the resolution on change the name of the company to URSUS d.o.o., and consequently the relevant application was submitted in the registry court.   

Setting up the limited liability company in Bosnia and Herzegovina constitutes implementation of the strategy of the Management Board of URSUS S.A. related to reconstruction of the commercial position of the brand URSUS on the Balkan market, what in the future should result in increase of the Company’s revenues.