CNPJ/MF: 27.093.558/0001-15 NIRE: 33.3.00289.74-7 Public Company
Mills announces the loss of political rights by Axxon
Mills Estruturas e Servios de Engenharia S.A. ("Company"), according to CVM 358 Instruction and in continuity with the material facts announced on April 7, 2016 and July 20, 2016, announces that the Equity Investment Fund Axxon Brazil Private Equity Fund II ("Axxon") and Andres Cristian Nacht, Jytte Kjellerup Nacht, Tomas Richard Nacht, Antonia Kjellerup Nacht, Pedro Kaj Kjellerup Nacht, Snow Petrel, S.L. and Francisca Kjellerup Nacht informed the Company that (i) Axxon did not become holder of shares representing 13.00% (thirteen percent) of the Companys share capital, and therefore, not meeting the conditions set out in Clause 3.2.2 of the shareholders agreement celebrated on April 7, 2016 between Axxon and the Companys controlling shareholders ("Shareholders Agreement") within the time limit set out in the clause mentioned above, which has expired on January 16, 2017; and, (ii) as a result, Axxon is definitively no longer entitled to the political rights provided for in Clauses 4.4, 4.5, 11.3.2 and 11.5 of Shareholders Agreement. The remaining provisions of Shareholders Agreement remain unchanged and it is available on the Company's website and via IPE system (www.cvm.gov.br).