Concluding a significant agreement with Ferrum S.A.

Date  of issue: 2013-07-15
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Concluding a significant agreement with Ferrum S.A.

CONTENT OF THE REPORT:
The Management of Izostal S.A. informs that on the 15th of July 2013 Izostal S.A. (The Company, Buyer) concluded a contract for purchase of black steel pipes with Ferrum S.A. (Supplier) seated in Katowice. As a result of the transaction, the total value of sales and purchase contracts concluded by the Company with Ferrum S.A. since the 23rd of April 2013 (current report n. 12/2012) exceeded 10% of equity of the Company and equaled net PLN 19,181 thousand.

Within the period stated, the transaction of the highest value was purchase contract concluded by Izostal S.A. (Buyer) with Ferrum S.A. (Seller) for the purchase of coatless steel pipes on the 10th of June 2013, of total net value around EUR 1,702 thousand, which after the conversion based on the mean NBP exchange rates on the day of conclusion equaled around PLN 7,331 thousands (net).
In the case of exceeding supply deadlines by Ferrum S.A. the Buyer is entitled to a penalty fee in an amount of 0.35% of order value per each day of delay, but no more than 20% of total value.  The contract performance deadline is 21. June 2013.

Other terms of the transaction do not vary from the commonly adopted for this kind of contracts.

All transactions concluded with Ferrum S.A. stated above may be deemed significant contract, because its value exceeds 10% of the Company’s equity.

Specific legal basis: §5 clause 1 item 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, Marek Mazurek 2013-07-15
Management Board Vice President, Jacek Podwińsk 2013-07-15
 
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678