EU competition authorities approved sale of Kesko Food's Rimi Baltic shares

The EU competition authorities have approved the deal by which Kesko Food Ltd, part of the Kesko Group, sells its 50% shareholding in Rimi Baltic AB to ICA Baltic AB, part of the ICA Group.

Kesko Food and ICA Baltic signed an agreement on 9 October 2006 according to which Kesko Food sells its 50% shareholding in Rimi Baltic AB to ICA Baltic for €190 million. It was also agreed that Rimi Baltic acquires the food trade properties owned by Fiesta Real Estate AS, an Estonian subsidiary of Kesko, and leased to Rimi Baltic in Estonia for €50 million.

It is estimated that the share transaction will take effect on 18 December 2006 and the property transactions at the beginning of January 2007. The capital gain from the transactions to Kesko is anticipated total approximately €155 million, of which the share transaction will account about €130 million. As from 10 October 2006, Rimi Baltic AB is treated as a discontinued operation in compliance with the IFRS 5 standard.

Kesko has previously published a stock exchange release concerning the deal on 10 October 2006.

Further information:
Corporate Executive Vice President Juhani Järvi, Kesko Corporation, tel. +358 1053 22209
President Terho Kalliokoski, Kesko Food Ltd, tel. +358 1053 22204

Kesko Corporation

Paavo Moilanen
Senior Vice President, Corporate Communications

DISTRIBUTION
Helsinki Stock Exchange
Main news media