YIT Group, which is the largest construction and development company in Finland and has so far operated in 10 countries, including the Czech Republic (in the Czech Republic it is one of the five strongest developers in Prague, selling over 350 apartments last year and turnover approaching 2 billion crowns), has completed a strategic review of its business in Russia. Based on this analysis, it signed an agreement with Etalon Group PLC to sell its business in Russia. The strategic analysis of YIT’s business in Russia began in November 2021 and accelerated in March 2022 due to changes in the geopolitical situation.
Markku Moilanen, President and CEO of YIT Corporation, said: “Due to the Ukrainian crisis, we have had to face unprecedented challenges in doing business in Russia, making it increasingly difficult to continue our activities there. Selling business in Russia gives us the opportunity to leave quickly, in a controlled and complete manner. From our point of view, as well as from the point of view of clients and employees, this was by far the most preferred solution in the current circumstances. ”
The closing of the sale is estimated during April. The transaction price is approximately 50 million euros. As a result of the sale, YIT recognizes an impairment loss of approximately EUR 150 million in the income statement for the first quarter of 2022.
The accumulated exchange rate difference RUB / EUR was -284 million euros at the end of 2021. In addition, the change in the RUB / EUR transfer difference in the first quarter of 2022 is estimated to reach approximately -40 million euros.
The presented figures are preliminary estimates, which are influenced, among other things, by changes in the RUB / EUR exchange rate.
The decrease in the value recognized from the Russian business does not affect the adjusted operating profit of YIT. The YIT Group classifies the operations that are part of the transaction as assets held for sale and recognizes them in its financial statements for the first quarter of 2022 as discontinued operations.
The closure of the YIT Group in Russia has no impact on its prospects for further business. The YIT Group expects the adjusted operating profit from continuing operations to be higher than in 2021. The corresponding figure for 2021 will be updated at the latest in the interim report for the first quarter of 2022 to reflect the changed scope of YIT’s business.
