Aspo Plc
Inside information
October 17, 2022 at 8:00 a.m.
Aspo’s subsidiary Telko to divest its Russian operations
Aspo Group’s subsidiary Telko has signed a binding framework agreement according to which it will sell the share capital of its Russian subsidiary Telko OOO to Russian industrial operator GK Himik. The purchase price is approximately EUR 9.5 million. Rights to Telko's name and trademarks are not included in the sale.
The completion of the transaction requires an approval of the Russian authorities. As previously announced, Telko began in June to explore the possibilities of exiting its Russian operations during the current year.
“Already in the spring, we made the decision to exit all our Russian businesses. I am very satisfied that through a careful mapping process we have found a new owner for Telko's operations in Russia. This transaction supports our target to grow in Western markets in accordance with our renewed strategy”, says Aspo’s CEO Rolf Jansson.
As a result of the divestment, Aspo estimates that it will recognize a total expense of approximately EUR 9 million, including a write-down of the company’s net assets and also an impairment loss on Telko’s goodwill, as well as the transaction costs. In addition, based on the current exchange rate of the Russian ruble, an amount of approximately EUR 3 million would be recognized as an expense due to translation differences, which does not reduce the equity of the Group. The presented figures are preliminary estimates, which are affected by changes in the exchange rates of the ruble and the euro, among other things. In Aspo's financial reporting, Telko's Russian business is classified as held for sale from the month of signing the binding framework agreement.
As previously announced, Telko is also exiting the Belarusian market. This process is still ongoing.
Aspo Plc
Rolf Jansson
CEO
Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, tel. +358 400 600 264, rolf.jansson@aspo.com
Distribution:
Nasdaq Helsinki
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Aspo creates value by owning and developing business operations sustainably and in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities. Aspo Group has businesses in 18 different countries, and it employs a total of approximately 900 professionals.