KESKO CORPORATION STOCK EXCHANGE RELEASE 04.11.2015 AT 09.00 1(1)
Kesko to centralise the Baltic building and home improvement trade in Senukai
On 3 November 2015, Kesko has agreed to centralise the Baltic operations in its Lithuania-based subsidiary, UAB Senuku Prekybos centras (Senukai). The plan is to implement the integration in such a way that Kesko will sell the shares in its wholly owned companies responsible for the operations of K-rauta stores in Estonia and Latvia to Senukai.
- The arrangement will enable the Baltic and Belarusian business operations to be managed as a whole. This will provide us with better opportunities to accelerate profitable growth in the developing Baltic and Belarusian markets, where we are now already a clear market leader in the building and home improvement trade with a total of 47 own stores and 51 stores operating under the franchise model and sales amounting to €573 million, says Terho Kalliokoski, President of the home improvement and speciality goods trade division.
The ownership arrangement is planned to be implemented in early 2016. The implementation is subject to the approval of the competition authority. The arrangement is not expected to have a material impact on Kesko's sales, performance or financial position during the next 12 months. The arrangement will have no immediate impacts on employees or the operation of stores.
Further information is available from Kesko's Terho Kalliokoski, President, Home improvement and speciality goods trade division, tel. +358 105 320 200, and Jukka Erlund, Chief Financial Officer, tel. +358 105 320 125.
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