Execution by Echo Prime Assets B.V. of share purchase agreements with Lisala sp. z o.o. and Leon Kok.

The management board of Echo Investment S.A. (the “Issuer”) hereby informs that on 23 August 2016 a subsidiary of the Issuer, Echo Prime Assets B.V. (“Echo Prime”) entered into two agreements for the sale of shares in Echo Polska Properties N.V. (“Echo Polska”) to: (i) Lisala sp. z o.o. with its registered seat in Warsaw (“Lisala”); and (ii) Leon Kok ( “LK”), a natural person, a citizen of the Republic of South Africa and the financial director of Redefine Properties Limited (“Redefine”) (jointly, the “Purchasers”) (the “Agreements”). Pursuant to the agreement regarding the sale of the shares to Lisala, Echo Prime agreed to sell and Lisala agreed to buy 12,863,228 shares in Echo Polska representing approximately 2.5% of the share capital in Echo Polska (“Shares A”) (“Agreement A”). Pursuant to the agreement regarding the sale of the shares to LK, Echo Prime agreed to sell and LK agreed to buy 25,726,456 shares in Echo Polska, representing approximately 5% of the share capital in Echo Polska (“Shares B”) (“Agreement B”) (Shares A and Shares B jointly as the “Shares”). Pursuant to Agreement A Lisala is entitled to transfer the rights under Agreement A to Echo Partners B.V. Pursuant to Agreement B, it is the intention of the parties that the sale of Shares B be effected between Echo Prime and the managing directors of Redefine or an entity controlled thereby (the “Redefine Directors”). LK is required to transfer the rights under Agreement B to the Redefine Directors within one month from the execution thereof. In relation to the sale of Shares A to Lisala and Shares B to the Redefine Directors and due to the fact that Lisala agreed to being prohibited from disposing of the Shares for five years following the shares in Echo Polska being admitted to trading on the Johannesburg stock exchange, Redefine agreed to shorten the period related to the disposal of the shares in Echo Polska held by Echo Prime to one year following their admission to trading on the Johannesburg stock exchange. Pursuant to Agreement A, the purchase price is EUR 12,863,228 and it is to be paid by Lisala by 1 April 2018 with interest accrued on the purchase price for the period until the date of payment. In Agreement B the purchase price was set at EUR 25,726,456 and will be paid in two tranches: (i) the first, on the closing date; (ii) the second, within 12 months from the date of the execution of Agreement B (with interest accrued for that period on the value of the second tranche). All payments made by Echo Polska in favour of each of the Purchasers after the acquisition of the Shares thereby are to be paid by Echo Polska directly to Echo Prime to first cover the interest accruing on the purchase price (in the case of Agreement B, the second tranche of the purchase price) which is to be paid by the Purchasers in accordance with the Agreements and, subsequently, to cover the purchase price (in the case of Agreement B, the second tranche of the purchase price). The transfer of ownership of both Shares A and Shares B (the “Closing”) will depend on the satisfaction of the conditions precedent of Echo Polska, Echo Prime or Lisala obtaining, as the seller, consents of the financing banks for the execution of each of the Agreements to the extent that obtaining such consents is required. Each of the parties to the Agreements agreed to exercise duly diligent efforts to ensure that the conditions precedent are satisfied on an as soon-as-possible basis after the date of the execution of the relevant Agreement, but prior to 30 November 2016. If the condition precedent is not satisfied or waived by the above-mentioned date, each of the Agreements will be terminated, unless the parties agree, prior to that date that the deadline for the satisfaction of the conditions precedent is extended. The Closing with respect to Shares A and Shares B will occur within five business days from the satisfaction of the above-mentioned conditions precedent in accordance with the relevant Agreement or within a different deadline agreed by the parties of the relevant Agreement. Furthermore, on the Closing date, the parties to the Agreements are required to: (i) present the consents and documents necessary for the execution of the transactions under each of the Agreements, including specifically the consents of the other shareholders of Echo Polska; (ii) enter into a sale lock-up agreement with respect to Shares A and Shares B, respectively; and (iii) enter into agreements securing payments of the purchase price (in the case of Agreement B, the second tranche of the purchase price). Under Agreement B LK is also required to deliver, on the date of closing, a guarantee agreement to secure the payment of the second tranche of the purchase price. The liability of Echo Prime for claims raised on the basis of and in connection with each of the Agreements was limited to the equivalent of the purchase price actually obtained by Echo Prime pursuant to each of the Agreements.
Each of the Agreements provides that the shares in Echo Polska will be admitted and introduced to trading on EUR MTF, an alternative trading system at the Luxembourg exchange and, subsequently, on the Johannesburg exchange (with no specific deadline thereof). Consequently, the parties of each of the Agreements undertook to exercise efforts to effectively transfer the ownership of the Shares in accordance with the laws of the Netherlands and the Republic of South Africa, and the relevant regulations of the Luxembourg exchange and the Johannesburg exchange. Otherwise, the Agreements contain standard clauses generally used in such type of agreements. The agreements do not provide for contractual penalties.
The agreements are governed by the laws of England and Wales. Legal basis: Article 17(1) of the MAR – inside information.