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Nokian Tyres sells its Russian business to Tatneft — company

It is reported that the final purchase price is affected, among other things, by net cash and working capital adjustment and changes in RUB/EUR exchange rate

MOSCOW, October 28. /TASS/. Nokian Tyres sells its Russian business unit to Russian oil producer Tatneft, the Finnish tire producer said on Friday.

Nokian "has signed an agreement to sell its Russian operations to Tatneft," the company said. "The debt free and cash free purchase price is expected to be approximately EUR 400 million. The final purchase price is affected, among other things, by net cash and working capital adjustment and changes in RUB/EUR exchange rate," Nokian noted.

"The transaction is subject to approval by the relevant regulatory authorities in Russia and other conditions, which creates substantial uncertainties related to the timing, terms and conditions and the closing of the transaction," the tire producer added.

"The exit from Russia will significantly impact Nokian Tyres’ financial results. Discontinued supply of tires from Russia will have an adverse impact on sales especially in Central Europe in next two to three years," Nokian said.

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