The board of directors of Play Communications S.A. (the “Company”) hereby reports that on 15th of January 2018, P4 sp. z o.o. (“PLAY”), a wholly owned subsidiary of the Company entered into a set of agreements with Virgin Mobile Polska sp. z o.o. (“VMP”) and its shareholders: Dirlango Trading & Investments Limited and VMCEE B.V.  as well as with the group of leading investors in VMP: Vegueros Coöperatief U.A. (a wholly owned subsidiary of Delta Partners Emerging Markets TMT Growth Fund II L.P.), Farledico Investments Limited (a wholly owned subsidiary of Łukasz Wejchert) and Kai-Uwe Ricke (together, the “Investors”).

VMP is the largest Polish MVNO with 412.000 customers as of the end of 2016.

These agreements give PLAY, among others, a call option to acquire all shares in VMP during 2020 at an agreed valuation methodology based on VMP’s one time annual revenue adjusted by certain elements.  The Investors undertook to procure that all shares in VMP are sold to PLAY in case PLAY exercises the call option.

In addition, the agreements define terms of future cooperation between PLAY and VMP, continuing the successful relationship from the inception of VMP, with increased committed revenues by approx. PLN 25m up to total of approx. PLN 84m to PLAY for the years 2018-2021. PLAY is satisfied with these agreements as these enhance PLAY‘s leadership in the Polish mobile market.

Legal basis:

Art. 17 MAR