As part of the bookbuiling process for shares in Tauron Polska Energia, KGHM has made a public declaration of interest in participating in the company’s stock exchange debut. This should be treated as an element of the previously announced by KGHM’s Management Board strategy to diversify business operations. This strategy comprises, inter alia, searching for interesting investments in the power sector.

While preparing the stock exchange debut of Tauron, Ministry of the State Treasury has divided the offering into one part targeted at retail investors, and another one, targeted at institutional investors. Such a split was made with the debut’s, and in consequence, Tauron’s future development, success in mind. The solution was adopted also with investors in mind, as they are participating in yet another historical IPO. As a result of this split, KGHM will be treated as any other institutional investor. There is no special tranche of shares for KGHM, nor there are any special allocation rules, which would differ from those applicable to other institutions.

The objective of the Ministry is to ensure for Tauron a stable shareholder base with a long-term investment horizon, comprising retail and domestic, as well as international, institutional investors. For this reason, the State Treasury – in line with the principles laid out in the offering prospectus – has no intention to treat during the share allocation process purchase demand indicated by KGHM in a manner privileged against other institutional investors. The allocation of the shares within the IPO to institutional investors will be made in accordance with principles customary for international financial markets, while taking into account parameters typical for transactions of this kind, such as time of placing an order, its size and price offered.

The Ministry would like to see that the company as important for the Polish economy as Tauron is, becomes member of the WIG20 index – which is devoted to the largest and the most liquids stocks- as quickly as possible, Furthermore, the State Treasury wishes to see that institutional investors, both domestic and international, have their representation in the Supervisory Board of Tauron and decide – jointly with the State Treasury - about the key directions of the company’s development.