The listed Kesko group of Finland announced that it has sold a minority interest in its Baltic machinery trade subsidiaries to Danish Agro group. Source: The Baltic Course
A Kesko Corporation subsidiary, Konekesko Ltd, sold 45% of its Baltic subsidiaries to DAVA Agravis Machinery Holding A/S, a company of the Danish Agro a.m.b.a. group. In the same context, an agreement was made on options to expand DAVA Agravis’s ownership to include the whole share capital of the Baltic machinery trade companies and Danish Agro group’s ownership to include Konekesko’s agricultural machinery business in Finland.
In addition to the sale and purchase of 45% of the share capital of the Baltic subsidiaries, the parties agreed on DAVA Agravis’s right to buy and Konekesko’s right to sell the rest of the subsidiaries’ shares by notifying about it no later than January 2019.
In addition, the parties agreed on the option of Danish Agro’s other subsidiary, Danish Agro Machinery Holding A/S, to buy and Konekesko’s option to sell Konekesko’s agricultural machinery trade functions in Finland by notifying about it no later than September 2020.
Konekesko’s Baltic subsidiaries engage in the import, sale and servicing of agricultural, forest and construction machinery.
Key brands represented by the companies include Claas tractors, combines and grassland machinery, Ponsse forest machinery, Kobelco excavators and Kubota mini excavators.
Kesko’s strategic objective is to achieve growth in Finnish grocery trade, building and technology trade, and car trade. In 2016, pro forma net sales of the Baltic functions totaled 129 mln euros and operating profit was approximately 5 mln euros.
The debt free price of the shares now sold is approximately 21 mln euros, which has been paid in cash in connection with the closure of the transaction. The completion of the share and business transactions is subject to regulatory approval and fulfilment of other terms and conditions of the transactions.