Nokian Tyres said, based on information it had received from PJSC Tatneft, the Russian Governmental Commission on Monitoring Foreign Investments (the Russian Governmental Commission [RGC]) had approved PJSC Tatneft’s purchase of the tyre maker’s operations in Russia.
The initial signing of the transaction had been announced on 28 October, 2022.
According to a RGC resolution, the total permissible transaction price, defined by the commission, is RUB23,050m. The actual RUB/EUR exchange rate as determined by the Russian Central Bank on the day of payment will be applied.
Based on the Refinitiv 2PM CET FX benchmark exchange rate on 13 March, 2023, the price approved by the TGC would be EUR286m.
The original transaction price announced last 28 October was expected to be approximately EUR400m, and to be affected, among other things, by net cash and working capital adjustments and changes in the RUB/EUR exchange rate.
Nokian noted that substantial uncertainties still remain related to the transaction and its timing as well as the RUB/EUR exchange rate on the day of payment.
“The final closing of the transaction is subject to successful completion of compliance checks against the recent changes in sanctions and money transfer, among others,” it said.
“Nokian Tyres will communicate on the progress of the Russia exit when and as appropriate.”