Further to the press release dated December 18, 2016, and February 06, 2017, and subsequent updates posted in quarterly press releases thereafter, the Group learned on August 4, 2017, through an official announcement posted on the website of the European Commission entrusted to clear business mergers within its jurisdiction, of their formal approval regarding the execution of the joint venture agreement signed on February 6, 2017, between the Amiantit Group and WIG Wietersdorfer Holding GmbH (WIG) (Also known as “Hobas”). This agreement relates to the merger of the Amiantit’s European pipe manufacturing and sales entities and its Flowtite technology with the Hobas AG group of entities in Europe. Both businesses are specialized in the manufacturing and sale of pipe-systems and related accessories.

The Group has not as of date received direct official communication by the European Commission. The Group will make a subsequent announcement on the matter once it receives official communication. The formal closing of the deal entails several legal steps, which are expected to be completed over the third quarter of 2017. The merger may only be accounted for at closure, and its accounting implications will be computed at that time. However, the Group does expect that the deal would positively impact its earnings and equity once finalized. However, no significant cash flow impact is expected.