Atria Plc, Company announcement, 30 April 2021, 5:00 pm
The divestment of Atria's Russian subsidiary OOO Pit-Product has been completed
In February, Atria entered into an agreement to sell its Russian subsidiary OOO Pit-Product to Limited Liability Company Agricultural Complex Mikhailovskiy, member of the Cherkizovo Group. The divestment of OOO Pit-Product to the buyer has been completed today. The sales agreement does not include Atria Russia's other subsidiary Sibylla Rus LLC, which conducts fast food business in Russia.
The sales price is approximately EUR 30 million. The effect of the divested business on Atria Group's net sales is approximately EUR 35 million. The business has been loss-making.
The amount of accumulated translation differences related to Pit-Product on April 30, 2021 is approximately EUR -45 million. The translation difference has arisen from exchange rate changes during Pit-Product's ownership. Atria acquired Pit-Product in 2005. At that time, the exchange rate of the Ruble against the euro was about 34 and at the time of divestment approximately 90. Upon divestment of a foreign subsidiary, the accumulated translation differences related to that subsidiary, presented already earlier in equity, are recognized in profit or loss. As the accumulated translation differences already reduce the Group's equity, this entry will not have an effect on the Group's equity nor cash flow. The divestment is not expected to have any other significant impact on Atria's consolidated result.
For more information, please contact Juha Gröhn, CEO, tel. +358 400 684224.
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