Stock Exchange Release 5/3/2012 9:00
Sanoma Corporation has today signed an agreement to sell its kiosk operations in Finland, Lithuania and Estonia as well as its press distribution operations in Estonia and Lithuania to the Norwegian Reitan Servicehandel AS for an enterprise value of EUR 130.7 million, including the Rautakirja trade mark. The transaction is subject to EU merger control filing and the approval is expected to be received within two months from the filing. As a result, Sanoma expects to book a non-recurring capital gain of some EUR 80 million at the closing of this transaction.
"The divestment of our kiosk operations in Finland, Lithuania and Estonia as well as press distribution operations in Estonia and Lithuania is in line with our strategy to focus on consumer media and learning. The transaction demonstrates our firm commitment to strengthen our balance sheet and enables us to further develop our portfolio," says Harri-Pekka Kaukonen, President and CEO of Sanoma Corporation.
In 2011, the net sales for the assets to be divested totalled some EUR 375 million with an EBIT, excluding non-recurring items, amounting to some EUR 15 million. Some 2,600 employees will be transferred with the divested operations at closing. Post-closing of this transaction the Trade segment will comprise the Finnish press distribution and marketing services as well as the Estonian bookstore operations.
If the transaction materialises, it is estimated to have an effect on the Sanoma Group outlook for 2012. Sanoma Group's net sales are now expected to decrease slightly. Operating profit excluding non-recurring items is still expected to be around 10% of net sales and earnings per share excluding non-recurring items are estimated to grow in 2012. Previously, net sales were expected to grow slightly, mostly due to the acquired SBS operations in the Netherlands and Belgium.
Sanoma Corporation
Kim Ignatius
Chief Financial Officer
Additional information: Sanoma's Investor Relations, Martti Yrjö-Koskinen tel. +358 105 19 5064 or ir@sanoma.com
Sanoma.com
Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for nearly 15,000 people in over 20 countries. In 2011, the Group's net sales totalled EUR 2.7 billion.