RB 177/2017 Framework Agreement between AmRest and KFC France

With reference to the regulatory announcement RB 43/2017 dated March 15th, 2017 the Management Board of AmRest Holdings SE (“AmRest”, the “Company”) informs about signing on July 12th, 2017 of the Framework Agreement between AmRest (“Buyer”) and KFC France SAS (“KFC France”, “Seller”). Under the terms of the Framework Agreement (i) Buyer will acquire 42 equity restaurants run by KFC France in the French market, and (ii) Seller and the Company would sign a Development Agreement and Standard KFC International Franchise Agreement for each restaurant.

Estimated purchase price is expected at ca. EUR 39.9 million (ca. PLN 169 million). Final purchase price will be determined as at the day of the transaction closing.

Estimated revenues of the restaurants in the twelve months period ended on April 30th, 2017 amounted to EUR 99 million (ca. PLN 420 million).

It is the intention of the parties of the Framework Agreement that the closing of the transaction, including transfer of ownership of KFC business and payment of the purchase price, shall occur till end of the year 2017 (the “Completion”). The Completion is contingent upon some additional conditions, such as concluding additional agreements ensuring restaurants proper functioning after Completion, and lack of the material adverse change (“MAC”).

According to the Development Agreement to be signed before the Completion, AmRest intends to open about 150 KFC restaurants in the French market by end of 2023.

Legal act:

Art. 17 Sec. 1 of Regulation (EU) No 596/2014 of The European Parliament and of The Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC