K-Rahoitus Oy's share capital was today transferred to OKO Bank plc (Pohjola Bank plc from 1 March 2008). An agreement to this effect was signed between OKO and Kesko Corporation on 21 December 2007.
The preliminary price paid in connection with the conclusion of the deal is about 30 million euros. The final price will be established based on the amount of equity at the transaction closing date and a fixed amount of goodwill. Kesko will recognise a non-recurring gain of about 10 million euros on the disposal. As a result of financial liabilities repayable to Kesko, the cash flow impact of the transaction will be about 240 million euros.
In line with its strategy, Kesko will concentrate on its core business, namely consumer-customer retailing and services. This business deal will improve the consolidated balance sheet structure and expand the large-scale cooperation between Kesko and the OP-Pohjola Group started in 2006, which comprises card development, transfer of payments, cash management and customer financing.
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's credit portfolio totalled about 260 million euros at the end of September 2007.
Kesko published a stock exchange release about the matter on 21 December 2007.
Arja Talma, Senior Vice President, CFO, Kesko Corporation, tel. +358 1053 22113
Heikki Ala-Seppälä, Group Treasurer, Kesko Corporation, tel. +358 1053 22528
Senior Vice President, Corporate Communications and Responsibility
Helsinki Stock Exchange
Main news media
Kesko (www.kesko.fi) 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.