KESKO CORPORATION STOCK EXCHANGE RELEASE 24.08.2011 AT 17.45 1(1)
The subsidiary established by Kesko for INTERSPORT sports retailing in Russia is starting its operations. At the initial stage, the company operates 12 sports stores in the St. Petersburg and Moscow regions. The company intends to increase the number of its sports stores to 36 by the end of this year.
Based on the key terms and conditions of the arrangement concluded today, the Kesko subsidiary has acquired 12 INTERSPORT sports stores, including support functions required in the operations, from companies also engaging in INTERSPORT operations in the St. Petersburg and Moscow regions. Moreover, by the end of this year, the company is due to acquire the 24 stores left to the companies after the acquisition concluded today. Most of these stores are also located in the St. Petersburg and Moscow regions. In the future, the objective is to at least double the INTERSPORT store site network by the end of 2015.
In this context, the stores' fixed assets and inventories, leases, as well as stocks, support functions and personnel needed for the operations transferred to the company. The purchase price of the assets transferred to the company now and subsequently will be determined based on the actual value as at the transfer dates.
Kesko owns 80% and Melovest Ltd 20% of the company. The company shareholders, Kesko and Melovest, provide funds to the company operations in proportion to their ownership interests.
The arrangement is not expected to have a material impact on Kesko's sales, profit or financial position during the next 12 months.
Kesko has announced the arrangement in an earlier stock exchange release, on 3 June 2011.
Further information is available from Senior Vice President Matti Leminen, telephone +358 1053 40100, and Juha Nurminen, President of Intersport Finland Ltd, telephone +358 1053 40950.
Senior Vice President, Corporate Communications and Responsibility
NASDAQ OMX Helsinki
Main news media