The YIT Group, which is the largest construction and development company in Finland and has so far operated in 10 countries including the Czech Republic, 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.
YIT has concluded the strategic review of its businesses in Russia. As a result of the review, YIT has signed an agreement with Etalon Group PLC for the sale of YIT’s operations in Russia. The strategic review of the Russian businesses was initiated in November 2021 and accelerated in March 2022 due to the changes in the geopolitical situation.
Markku Moilanen, President and CEO of YIT: “Due to the Ukrainian crisis, our businesses in Russia were facing unprecedented challenges and it was becoming increasingly difficult to continue operations. The sale of the Russian businesses gives us an opportunity for a rapid, controlled and complete exit. From both ours and our customers’ and employees’ perspectives, this was by far the most preferred solution under the current circumstances.”
The sale is estimated to be closed during April. The transaction price is approximately €50 million. As a result of the sale, YIT will book an impairment of approximately €150 million in its first-quarter income statement.
The accumulated RUB/EUR translation difference was € -284 million at the end of 2021. In addition, the change in the RUB/EUR translation difference in the first quarter is estimated to amount to approximately €-40 million. The presented figures are preliminary estimates which are affected by, among others, changes in RUB/EUR exchange rate.
The impairment booked from the Russian businesses does not have an impact on YIT’s adjusted operating profit. YIT will classify the operations that are part of the transaction as assets held for sale and will report them as discontinued operations in its first-quarter reporting.
The sale of the Russian businesses does not have an impact on YIT's outlook for the rest of its businesses. YIT expects the Group adjusted operating profit of the continuing businesses to be higher than in 2021. The corresponding figure for 2021 will be updated in the first quarter interim report at the latest to reflect the changed scope of YIT’s businesses.
