Announcement regarding the acquisition of a share in the capital of Tunisian Company of Batteries NOUR

We hereby inform you that the Board of Directors of Monbat AD decided to acquire a share in the capital of Tunisian Company of Batteries NOUR. The decision was taken after discussion of the results of a preliminary examination (due diligence) including financial, technical and operational inspection carried out in 2020 and 2021, as well as the business plan and estimated cash flow concerning the financing of the acquisition, which is planned to be carried out by funds from the raised bond issue ISIN BG2100023170 and by own funds. The acquisition of NOUR is in line with the strategic objectives of Monbat AD for the establishment of its own production base and expansion of the market positions in North Africa and the Middle East, including but not limited to Tunisia, Algeria, Libya.

The Board of Directors approved the proposed by the operational team Share Purchase Agreement (SPA). The SPA provides that Monbat AD is to acquire totally up to 720 000 voting shares representing 60% of the capital of Tunisian Company of Batteries NOUR. The acquisition transaction will take place in two stages, the first one is for acquiring and paying the agreed in the SPA price of 23% of the shares; the remaining 37% will be acquired and paid within 31 December 2021.  
The transaction is carried out in compliance with the usual company course of business. In view of the above, the transaction does not fall under the regulation of Art. 114, para. 1 of POSA, as it is under the exceptions of Art. 114, para. 10, item 1 of POSA.

The Monbat Board of Directors authorizes the Executive Director of Monbat AD – Chavdar Danev, to sign the SPA for 720 000 voting shares representing 60% of the capital of Tunisian Company of Batteries NOUR, Mégrine,Tunisia in accordance with the decisions of the Board of Directors, as well as all additional documents for the acquisition deal finalization.