In relation to current report no. 39/2017 concerning the suspension of the actions designed to terminate the activities on Turkish market by the end of the first half of 2018, the Management Board of X-Trade Brokers Dom Maklerski S.A. (“Company”, “XTB”) informs that on 19 April 2018 it decided to resume an action to terminate the activities on Turkish market and liquidation of the subsidiary X Trade Brokers Menkul Değerler A.S. The decision of the Company was made after analyzing the situation of the subsidiary and in the absence of the expected relaxation of the restrictions introduced by the Capital Markets Board of Turkey (CMB), which the Company informed in the current report No. 5/2017.
At the same time, the Company explains that, according to the explanations provided in the published consolidated annual report for 2017, the Management Board of XTB estimates that upon the completion of the activity on the Turkish market, in accordance with the applicable accounting principles, it will be necessary to reclassify the exchange differences resulting from the conversion of the capital of a Turkish company, whereby the amount of exchange differences related to investments in Turkey is derived from the rate of Turkish lira, which is subject to fluctuations, hence as at the date of this current report the Company is not able to precisely estimate the value of this financial cost, which will be recognized in the future.
In addition, the Company informs that due to the decision on withdrawing from the Turkish market and liquidation of X Trade Brokers Menkul Değerler A.S., on the same day, the Management Board updated the Strategy of the XTB Capital Group, additionally taking into account Africa and Asia as new directions of XTB geographic expansion. In the Company’s opinion, Africa and Asia are attractive regions for the FX/CFD market, with high growth potential. The Company’s updated strategy is presented in attachment to this current report.
Legal basis: Article 17 paragraph 1 MAR – inside information.
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