Stock Exchange Release 21/3/2011 14:00
The Sanoma Trade division of the Sanoma Group will sell its movie operations in Finland, Estonia, Latvia and Lithuania to the Swedish private equity company Ratos AB. The transaction is subject to the approval of the Finnish and Latvian competition authorities. The approvals are expected during April.
The enterprise value of the transaction is EUR 116.0 million. Sanoma will record a non-recurring capital gain of approximately EUR 50 million in its second quarter 2011 result.
In 2010, net sales of movie operations were EUR 88.6 million and operating profit EUR 8.4 million. The transaction includes the shares of Finnkino Oy and its subsidiaries AS Forum Cinemas, SIA Forum Cinemas, UAB Forum Cinemas as well as three properties related to these businesses in Finland and in Latvia. Movie operations employ some 620 people (FTEs).
This transaction is in line with Sanoma's strategy to focus its operations and to concentrate on consumer and business-to-business media and learning solutions.
"The media landscape is rapidly changing. To be able to respond to these changes and to win in the new marketplace, we will increase focus on consumer as well as business-to-business media and learning solutions," says Harri-Pekka Kaukonen, President and CEO of Sanoma.
If the divestment of movie operations materialises, it is estimated to have an effect on the outlooks of the Sanoma Trade division and the Sanoma Group. Sanoma Trade's net sales and operating profit excluding non-recurring items are expected to decrease clearly in 2011. Previously, Sanoma Trade's net sales were estimated to grow slightly and operating profit excluding non-recurring items to improve clearly.
As a result of the transaction, the Sanoma Group's net sales and operating profit excluding non-recurring items are expected to decrease slightly in 2011. Previously, net sales and operating profit excluding non-recurring items were expected to be at the previous year's level.
Chief Financial Officer
Harri-Pekka Kaukonen, President and CEO, Sanoma tel. +358 105 19 5021
Sanoma's Investor Relations, Kare Laukkanen tel. +358 105 19 5064 and Anna Tuominen tel. +358 105 19 5066 or firstname.lastname@example.org
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 20,000 people in over 20 countries throughout Europe. In 2010, the Group's net sales totalled EUR 2.8 billion.
Ratos is a private equity conglomerate. The company's mission is to maximise shareholder value over time through the professional, active and responsible exercise of its ownership role in primarily medium to large unlisted Nordic companies. Ratos' holdings include e.g. AH Industries, Anticimex, Arcus-Gruppen, Biolin Scientific, Bisnode, Contex, DIAB, EuroMaint, GS-Hydro, Hafa Bathroom Group, HL Display, Inwido, Jøtul, KVD Kvarndammen, Lindab, Medisize, Mobile Climate Control, SB Seating and Stofa. Ratos is listed on NASDAQ OMX Stockholm.