Kesko Concludes Sale of K-Rahoitus to OKO Bank
Kesko Oyj finalized the sale of K-Rahoitus Oy to OKO Bank Plc (Pohjola Bank Plc from March 1, 2008). The preliminary price for the transaction is approximately 30 million euros.
Helsinki – Kesko Oyj announced on January 31, 2008, that the share capital of K-Rahoitus Oy has been transferred to OKO Bank Plc. The agreement, signed on December 21, 2007, sets the preliminary purchase price at approximately 30 million euros.
The final price is subject to adjustment based on the equity at the closing date and a fixed goodwill amount. Kesko expects to recognize a non-recurring gain of about 10 million euros from the disposal. The cash flow impact of the transaction, due to the transfer of financial liabilities to Kesko, will be around 240 million euros.
In line with its strategy, Kesko will concentrate on its core business of consumer retailing and services. This transaction is expected to improve Kesko's consolidated balance sheet structure. It also expands the extensive cooperation between Kesko and OP-Pohjola Group, initiated in 2006, which covers card development, payment transfers, cash management, and customer financing.
K-Rahoitus Oy provides financing services primarily to business customers of Kesko Agro, Konekesko, and agricultural retailers in Finland, Estonia, Latvia, and Lithuania. At the end of September 2007, the company's credit portfolio totaled approximately 260 million euros.