Note 4
Discontinued operations and disposal of other assets
Discontinued operations in 2008
In March 2008, Kesko Corporation sold the share capital of Tähti
Optikko Group Oy. The debt-free selling price was about €15
million, which contributed a non-recurring gain of about €8.5
million.
In April 2008, Kesko Corporation sold the share capital of
Kauko-Telko Ltd engaged in technical trade. The debt-free price
was about €77 million, which contributed a non-recurring gain
of about €31 million.
The cash flows do not include the contribution of business disposals.
Disposal group 2008
In January 2008, Kesko Corporation sold K-Rahoitus Oy, one of its wholly-owned subsidiaries. In the 2007 financial statements, K-Rahoitus Oy's assets were reported in available-for-sale assets and in liabilities relating to available-for-sale assets. The transaction contributed a non-recurring gain of about €10.3 million.
Discontinued operations in 2007
In 2006, Kesko Food Ltd sold its 50% ownership interest in Rimi Baltic AB. The properties included in the transaction were sold in January 2007. The €28.2 million gain on the property disposal was reported in the profit from discontinued operations.
Disposal group 2007
In December 2007, Kesko Corporation signed an agreement by which it would sell the share capital of K-Rahoitus Oy, a subsidiary wholly owned by it. K-Rahoitus Oy provided financing services to business customers, mainly to professional customers of Kesko Agro, Konekesko and the agricultural retailers in Finland, Estonia, Latvia and Lithuania. The company had 7 employees in Finland and 15 in the Baltic countries. The whole personnel transferred to the new employer. The transaction was concluded after clearance from the authorities during the first part of 2008. When the deal was concluded, Kesko recognised a non-recurring gain on the disposal of €10.3 million. K-Rahoitus Oy's on-balance-sheet items were presented as assets held for sale and liabilities relating to available-for-sale assets (note 26).