BRE Bank and the Eastbridge N.V. company signed an agreement to take over shares in Elektrim Telekomunikacja

BRE Bank and the Eastbridge N.V. company signed an agreement to take over shares in Elektrim Telekomunikacja

BRE Bank informs that on 19th March 2002 an agreement has been executed between BRE Bank and the Eastbridge N.V. company. The agreement defines the preliminary conditions of establishing a special purpose vehicle (SPV), created to take over a package of 49% of shares in Elektrim Telekomunikacja Sp. z o.o., controlled by Elektrim S.A.It is estimated that finally the whole package of 100% of shares of Elektrim Telekomunikacja will be consolidated within one structure.According to the preliminary conditions BRE Bank is to take over 50% of shares in SPV.The company is planning to immediately start the negotiations with the Board of Elektrim about possibilities and conditions for Elektrim to leave the company Elektrim Telekomunikacja.Working out the formula to take over the package of shares of Elektrim Telekomunikacja acceptable for both parties would allow to solve the problem of Elektrim’s liquidity to a high extend, which would create a real basis to positively close the negotiations with debtors about the compromise conditions.As the shareholder of the Elektrim company BRE Bank is convinced that working out a compromise with the Elektrim debtors would be an important factor to restrict the investment risk in Elektrim shares.In BRE Bank’s opinion liquidating the telecommunication stocks by Elektrim and solving the indebtment problem would allow Elektrim to concentrate on activities in the power and energy sector. BRE Bank sees the future for Elektrim in the field of power engineering and is ready to actively support Elektrim initiatives connected with taking over companies dealing with generating and distribution of power.Creating the SPV depends on obtaining appropriate corporate approvals and on fulfilling a number of conditions. Key element will be to agree with the Elektrim Board upon the transaction structure. Depending on the negotiated transaction parameters the final agreement may require permits from – among others - the Securities and Exchange Commission, Office of Competition and Consumer Protection and Internal Affairs Ministry.