05.10.2018

The final settlement of the sale of the organised part of an enterprise of mFinanse

Current Report 

Drafted on:

05.10.2018

Current report No

49/2018

Abbreviated issuer’s name

mBank

Contents: 

With reference to the current report No. 70/2017 of November 27, 2017 related to the conditional agreement concluded by mBank S.A. with the registered office in Warsaw („Bank”) and Bank’s subsidiary mFinanse under which: (i) the Bank is obliged to sell and transfer 100%, i.e. 100,000, shares in Latona S.A. to Phoebe IVS with its registered office in Denmark (“Investor”) and (ii) mFinanse is obliged to thereupon sell and transfer an organised part of the enterprise of mFinanse to Latona S.A (the “Agreement”), the current report No 11/2018 of March 26, 2018 related to the sale of 100% shares in Latona S.A. and the current report No 12/2018 of March 27, 2018 related to the sale of an organized part of enterprise of mFinanse to Latona S.A., with reference to the final settlement of the transaction, the Management Board of the Bank hereby announces that the maximum total remuneration on account of the transaction will be approx. PLN 435 million.

 

As a result of the transaction, in the first half of 2018 the Group recognised a gross profit in the amount of PLN 238 832 thousand, as was reported in the mBank Group Condensed Consolidated Financial Statements for the first half of 2018. Due to the nature of the transaction, the recognition of the part of the remuneration in the future will depend on the performance of the business sold. This may result in the recognition of an additional gross profit of up to PLN 161 million in the period of approx. 6 years from the end of the first half of 2018.

 

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Director of the Compliance Department

Andrzej Jakubiak 05.10.2018