Joint-Venture Electrica - EsyaSoft Holding Ltd.

Societatea Energetica Electrica SA

31 July 2024

 

To:                              Bucharest Stock Exchange (BSE)

                                    London Stock Exchange (LSE)

Romanian Financial Supervisory Authority (FSA)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, FSA Regulation no. 5/2018 on issuers of financial instruments and market operations, and the Bucharest Stock Exchange Code

Report date: 31 July 2024

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/ 004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,395,530,040

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: Electrica and EsyaSoft Holding Ltd. of Dubai, UAE, part of the International Holding Company (IHC) Group, will set up a joint-stock company that will have as its object of activity the production and operation of advanced technologies in the field of green energy, intended for the national and European market

During its meeting on 31 July 2024, the Board of Directors of the Company approved the participation of Electrica SA in the establishment together with EsyaSoft Holding Ltd. of Dubai, UAE, part of the International Holding Company (IHC) Group, of a joint-stock company which will have as its object of activity the production and operation of advanced technologies in the field of green energy, for the national and European market.

This company, in which Electrica will hold 25% of the share capital and EsyaSoft 75% will build production units for green energy equipment, as well as electricity storage solutions and digitalization solutions for the electricity distribution network (smart meters). The project also includes the development and operation of an infrastructure for charging electric vehicles.

The new business segments intend to meet the growing demand at national and European level and will generate new jobs, and at the same time will benefit directly and indirectly all the core activities of the Electrica Group.

The initial share capital of the newly established company will be 90,000 lei, and the two shareholders will subsequently provide additional financing for the development of the activity. The financing method will be regulated by a Shareholders' Agreement (SHA), the initial amount foreseen by the parties being 100 million euros, the contribution of the two shareholders being proportional to the owned shares.

"Building on our strategic statement - 'Innovation Promise: Shaping a Sustainable Future' - and in line with our national strategy, this partnership represents a significant step towards achieving our goals. At the same time, it gives us the opportunity to position ourselves as an important player in the transition to a more sustainable and efficient energy system, both locally and regionally, a goal that is very important to us.

As mentioned when we launched our new strategy, some of the main objectives are the diversification of the services offered and exploration of regional growth opportunities for strengthening our position in the market. One of the opportunities materialized through the partnership with EsyaSoft, which will allow us to bring a new dimension to the activity of Electrica Group, for Romania and for all of us.", said Alexandru Chirita, Electrica's CEO.

"The partnership with Electrica allows us to bring the most advanced green energy technologies to Romania and to amplify our commitment to innovation and sustainability. We aim to significantly contribute to the development of a modern and efficient energy infrastructure that will support the transition to a green economy and generate long-term economic and social benefits. We are confident that this collaboration will add value to both parties and strengthen Romania's position as a regional player in the renewable energy sector," said Bipin Chandra, CEO of EsyaSoft Holding Ltd..

About EsyaSoft Holding Ltd.

EsyaSoft Holding Ltd. is a subsidiary of International Holding Company (IHC), Abu Dhabi, United Arab Emirates (UAE), specialized in providing power grid modernization and automation solutions through smartgrid technologies, advanced metering infrastructure (AMI), electric vehicle charging infrastructure, energy storage and consumer engagement, communications network, IT, IoT and advanced analytics and artificial intelligence solutions for energy utilities, gas and water. EsyaSoft has offices in over 10 countries, including the United Arab Emirates, India, Azerbaijan, the Netherlands, the United Kingdom, and the USA, serving over 35 global utility companies.

We remind the investors that, on 16 May 2024, Electrica announced ( BSE announcement: Iris Code 6D6FE, LSE announcement: RND Code 7937O) the signing of a Memorandum of Understanding with EsyaSoft Holding Ltd., part of the International Holding Company (IHC) group, Abu Dhabi, United Arab Emirates (UAE) regarding the collaboration in providing deployment and financing/investment scheme for network grid infrastructure modernization and automation, through smart-grid technologies, Advanced Metering Infrastructure (AMI), EV charging infrastructure, energy storage and consumer engagement.

CEO

Alexandru Aurelian Chirita

 

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