The Management Board of Poznańska Korporacja Budowlana Pekabex S.A. (hereinafter referred to as the “Issuer”) would like to inform you that today Pekabex Bet S.A. (a 100%-controlled subsidiary of the Issuer) entered into an agreement with VeidekkeEntreprenad AB (hereinafter referred to as “Veidekke”) with its registered office in Sweden regarding the design, manufacturing, delivery and assembly of prefabricated concrete elements for 70 residential apartments and 2 commercial premises for investment: Siv 1, Hylllie in Malmo, Sweden, (hereinafter referred to as the “Agreement”).
In consideration for performance of the subject matter of the Agreement, Pekabex Bet S.A. will receive remuneration in the amount of PLN 8,965,831.06 net. For the works covered by the subject matter of the Agreement, the parties determined the commencement date at the 4th week of 2018 and the completion date at the 36th week of 2018.
The provisions on liquidated damages are not different from standard terms used in this kind of agreements and include liquidated damages for failure to meet the completion date in the amount of 1% of the value of the Agreement per each commenced week of delay. The total value of liquidated damages on that amount may not exceed 10% of the value of the Agreement.
The remaining terms of the Agreement are not different from standard terms used in this kind of agreements and are based on ABT 06 and ABT-U 07 principles. The Agreement is governed by the laws of Sweden.
The Agreement was regarded as a major one due to the fact that the total value of agreements entered into with Veidekke since the beginning of the year exceeds 10% of the Issuer’s consolidated equity and amounts to PLN 38,291,532.71 and that it is expected to have a material and positive impact on assets of Pekabex Bet S.A. and, consequently, Pekabex Group. The highest-value agreement is the one about which the Issuer informed you in current report No. 24/2017 of 8 June 2017.