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2007-12-21 09:30:00 CET 2007-12-21 09:30:01 CET OKO Pankki Oyj - Tender offerOKO Bank to Buy K-Rahoitus and Expand Its Operations in the Baltic CountriesOKO Bank to Buy K-Rahoitus and Expand Its Operations in the Baltic Countries OKO Bank plc (Pohjola Bank plc as of 1 March 2008) will buy the entire share capital of K-Rahoitus Oy, a subsidiary of Kesko Corporation. OKO Bank and Kesko signed the deal on 21 December 2007, agreeing on a sales price of about EUR 30 million, of which goodwill accounts for about EUR 12 million. The final sales price will be determined on the basis of the equity on the execution date and the fixed goodwill. The sale will be concluded once all the official procedures have been completed in the early part of 2008. The two companies also agreed on cooperation according to which K-Rahoitus will continue to offer financing services to Kesko Agro and Konekesko customers. Existing customers continue to be served without interruption. K-Rahoitus offers financing services to corporate customers, mainly to professional customers of Kesko Agro and Konekesko and agricultural retailers in Finland, Estonia, Latvia and Lithuania. The company's loan portfolio stood at about EUR 260 million on 30 September 2007. K-Rahoitus employs 22 people, 15 of which work in the Baltic countries. The entire staff will move to work under OKO Bank Group. The acquisition of K-Rahoitus strengthens OKO Bank's position as a provider of lease finance services in Finland. The Group's banking operations will also expand in the Baltic countries. 'Both OKO Bank's and OP-Pohjola Group's corporate customers have expanded their operations in the Baltic countries, so we too want to increase our services in this quickly growing market,' says Timo Ritakallio, OKO Bank's Deputy CEO. 'This deal and the related cooperation agreement will further deepen the work we started together in 2006,' continues Mr Ritakallio. It will also enable us to develop financing services into a much more extensive package and to offer it to a wider number of potential customers in Estonia, Latvia and Lithuania. Until now, OKO Bank has served its customers across the Gulf of Finland primarily through its partners. The bank has had a representative office in Tallinn since 1994. The acquisition of K-Rahoitus is in line with OKO Bank's strategy. The Group recently updated its strategy (see company release on 27 November 2007) and will focus more on its international services. One of the objectives is to continue to expand and develop the Baltic operations both in the field of Banking and Non-life Insurance. OKO Group carries out non-life insurance operations through the Seesam companies it owns in the Baltic countries. The Seesam companies offer their customer comprehensive insurance services in Estonia, Latvia and Lithuania. Seesam International Insurance Company Ltd, which operates in Estonia, was established in 1991, with the Latvian and Lithuanian companies getting their operating licences in 1993 and 1998, respectively. The acquisition will have no effect on OKO Bank Group's 2008 earnings. OKO Bank plc is a Finnish financial services company providing banking, investment and non-life insurance services, and Ranks among Finland's leading commercial banks and non-life insurance companies. It has around 30,000 shareholders and its Series A share has been listed on the Helsinki Stock Exchange since 1989. OKO Bank plc will change its name to Pohjola Bank plc on 1 March 2008.(www.oko.fi) K-Rahoitus Oy offers financing services to corporate customers, mainly to professional customers of Kesko Agro and Konekesko and agricultural retailers in Finland, Estonia, Latvia and Lithuania. The company employs 7 employees in Finland and 15 in the Baltic countries. The entire staff will move to work under OKO Bank Group. Kesko (www.kesko.fi) is a Finnish retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko has about 2,000 stores engaged in chain operations in the Nordic and Baltic countries and Russia. OKO Bank plc Markku Koponen Senior Vice President DISTRIBUTION OMX Nordic Exchange Helsinki London Stock Exchange SWX Swiss Exchange Major media www.oko.fi FOR MORE INFORMATION, PLEASE CONTACT: Timo Ritakallio, Deputy CEO of OKO Bank, tel. +358 500 536 346 |
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