KESKO CORPORATION STOCK EXCHANGE RELEASE 21.12.2007 AT 10.30 1(2)
Kesko Corporation and OKO Bank plc have today signed an agreement by
which OKO Bank acquires the share capital of K-Rahoitus Oy, a
subsidiary wholly owned by Kesko. The purchase price is estimated at
about 30 million euros. The final price will be established based on
the amount of equity at the closing of the transaction, plus a fixed
amount of goodwill. When the deal is concluded, Kesko will recognise
a non-recurring gain on the disposal of about 10 million euros. The
cash flow impact of the financial liabilities repaid to Kesko in
connection with the conclusion of the transaction is about 240
million euros. The transaction will be concluded after clearance from
the authorities during the first part of 2008.
K-Rahoitus Oy provides financing services to business customers,
mainly to professional customers of Kesko Agro, Konekesko and the
agricultural retailers in Finland, Estonia, Latvia and Lithuania. The
company has 7 employees in Finland and 15 in the Baltic countries.
The whole personnel will transfer to the new employer.
The divested company will continue operating normally after the
change of ownership. OKO Bank has undertaken to sign new agreements
with K-Rahoitus' business partners, corresponding to the existing
cooperation agreements. They will enable the existing customers and
business partners to continue cooperating with K-Rahoitus without any
interruptions or disturbances.
In line with its strategy, Kesko will concentrate on its core
business, namely consumer-customer retailing and services. The deal
that was signed today will improve the consolidated balance sheet
structure. The deal is part of the extensive cooperation between
Kesko and the OP-Pohjola Group started in 2006, which comprises card
development, transfer of payments, cash management and customer
financing.
Further information:
Arja Talma, Senior Vice President, CFO, Kesko Corporation, tel. +358
1053 22113
Heikki Ala-Seppälä, Group Treasurer, Kesko Corporation, tel. +358
1053 22528
Kesko Corporation
Paavo Moilanen
Senior Vice President, Corporate Communications
DISTRIBUTION
Helsinki Stock Exchange
Main news media
Kesko is a Finnish retail specialist whose stores offer quality to
the daily lives of consumers through valued products and services at
competitive prices. Kesko has about 2,000 stores engaged in chain
operations in the Nordic and Baltic countries, and Russia.
OKO Bank plc is a Finnish financial services company that provides
banking, investment and non-life insurance services. OKO Bank is one
of Finland's leading players both as a commercial bank and non-life
insurance company. OKO Bank Series A shares have been quoted on the
Helsinki Stock Exchange since 1989. There are some 30,000
shareholders. From 1 March 2008, OKO Bank plc's corporate name will
be Pohjola Bank plc.
