50.2 Management of Pekao Pension Funds

On 16 November 2017, PTE PZU signed an agreement with Pekao and Pekao PTE for the acquisition of management of Pekao Pension Funds. The agreement is conditional upon KNF’s approval for the transaction. The approval is expected in late first quarter or early second quarter of 2018. Until the provisions of the agreement are carried out, Pekao Pension Funds are managed by PTE.

The acquisition of management of Pekao Pension Funds by PTE PZU is driven by the need to ensure compliance of the PZU Group with Article 38 of the Pension Funds Act, which requires that related parties may be shareholders in one and only one pension fund company. PZU and Pekao became related parties upon the acquisition by PZU of a controlling stake of Pekao’s shares referred to in section 2.4.1.