Current report 38/2015
Title:
Conclusion of a contract for sales of tractors of the value 55 million USD
Legal basis:
Art. 56 sec. 1 point 2 of the Act on Public Offering – current and periodical information
Message:
With reference to the current report no. 37/2015, the Management Board of the Issuer hereby informs that on the 22 October 2015 URSUS S.A. concluded with the company The National Service Corporation Sole (SUMA JKT) with the seat in Dar es Salaam (Tanzania) a contract for sales of tractors, implements and spare parts of the total value 55 million USD.
On the basis of the concluded Contract the Issuer will supply 2400 agricultural tractors in SKD form in the power range 50-85 HP, together with implements and spare parts thereof, as well as it will assure supply of equipment for assembly hall and eight servicing centers for tractors. Deliveries within the Contract will be executed in lots in the I, II and III quarter of 2016. According to the provisions of the Contract, the Issuer will organize trainings for the buyer’s staff and will assure the technical support to the required extent.
The contract shall enter into force 15 days after the date of sending by the Ministry of Finance of the Republic of Poland to the Ministry of Finance of the United Republic of Tanzania of the approval of the Agreement between the Government of the Republic of Poland and the Government of the United Republic of Tanzania on extending a tied aid credit, dated the 28th September 2015.
All payments for goods being subject of the contract will be effected in accordance with the above-mentioned intergovernmental agreement and the terms of the banking arrangements to be entered into between Bank Gospodarstwa Krajowego (BGK) and the Ministry of Finance of the United Republic of Tanzania or its authorized representative.
The first payment under the Contract will be made as an advance payment before starting deliveries in the amount of 40% of the contract value, i.e. 22.000.000 USD. 58% of the total value in the amount of 31.900.000 USD will be paid to the Issuer after submission of the appropriate transport documents for subsequent deliveries of the goods, while the remaining 2% of the price in the amount of 1.100.000 USD will be paid after signing by the buyer of the acceptance protocols for the received goods.
Any disputes arising out of or in connection with the contract shall be settled by International Chamber of Commerce - International Court of Arbitration in London. The contract shall be interpreted and enforced in accordance with the laws of the United Republic of Tanzania.
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.
