The sale of YIT’s Nordic paving and mineral aggregates businesses to Peab completed – positive cash flow of approximately EUR 285 million
- YIT will record a positive cash flow effect of approximately EUR 285 million
- Net debt will decrease by approximately EUR 310 million
- Plan to pay the extra dividend of no more than EUR 0.12 in October as authorised by the Annual General Meeting
The sale of YIT’s paving and mineral aggregates businesses in Finland, Sweden, Norway and Denmark to Peab has been completed. On March 27, 2020, YIT announced that the conditions of the transaction had been met.
YIT will book the transaction in the second quarter of 2020 results. The debt-free purchase price is approximately EUR 280 million. YIT will record a positive cash flow effect of approximately EUR 285 million and a capital gain of approximately EUR 40 million which is not part of adjusted operating profit. In addition, the IFRS 16 lease liabilities of EUR 26 million related to the sold business will be transferred to the buyer. In total, YIT’s net debt will decrease approximately EUR 310 million as a result of the transaction.
“With the transaction, YIT’s business portfolio will be streamlined and the balance sheet strengthened. With the capital released through the sale, YIT will be able to significantly decrease its gearing, hence, to accelerate growth in strategic priority areas: urban development and non-cyclical businesses,” says Kari Kauniskangas, President and CEO of YIT.
In line with the authorisation that the Annual General Meeting gave to the Board of Directors on March 12, 2020, YIT plans to pay the earlier announced extra dividend of no more than EUR 0.12 in October in connection with the second instalment of the actual dividend of EUR 0.14. According to the AGM resolution, the dividend record date for the second instalment is September 22, 2020 and the dividend payment date is October 6, 2020.
For further information, please contact:
Tommi Järvenpää, Vice President, Investor Relations, YIT Corporation, tel +358 40 576 0288, firstname.lastname@example.org
Ilkka Salonen, CFO, YIT Corporation, tel. +358 45 359 4434, email@example.com
Vice President, Investor Relations
Distribution: NASDAQ Helsinki, key media, www.yitgroup.com
YIT is the largest Finnish and a significant North European construction company and urban developer. We develop and build apartments and living services, business premises and entire areas. We are also specialised in demanding infrastructure construction. Together with our customers, our nearly 8,000 professionals are creating more functional, attractive and sustainable cities and environments. We work in 10 countries: Finland, Russia, Sweden, Norway, the Baltic countries, Czech Republic, Slovakia and Poland. Our revenue in 2019 was approximately EUR 3.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com