Rautakirja to be divided into four companies on 1 October 2011

At the end of April, we informed that the present Rautakirja Group will be divided into four different companies as a part of the process, in which our parent company Sanoma Corporation will simplify its organization structure. The de-merger will come into effect on 1 October 2011 as planned, and at the same time the Rautakirja Group ceases to exist as a legal structure.

Sanoma's reporting structure will not change in connection with this, and Sanoma Trade (Rautakirja) will continue as a part of Sanoma as before.

The new companies, which will be formed as Rautakirja is divided into four are

• R-kioski Ltd., which consists of the Finnish kiosk operations business, Rautakirja Estonia AS in Estonia and UAB Lietuvos Spauda in Lithuania
• Pressco Trade Services (PTS) Ltd.,which consists of the Finnish trade services business (Lehtipiste, Printcenter and Postituspojat), OÜ Lehepunkt in Estonia and UAB Impress Teva in Lithuania
• Rautakirja Ltd., which consists of the administrative division of the present Rautakirja Group, and among others  Narvesen Baltija SIA in Latvia (Rautakirja's ownership share 50 %) and Helsinki Halli Oy (Rautakirja's ownership share 38 %)
• Kiinteistö Oy Ärrävaara

The new companies, which are established in the de-merger, are 100 % owned by Sanoma Corporation, and Rautakirja’s president Hellevi Kekäläinen will act as the managing director for all of the new companies as of 1 October 2011. Rautakirja’s businesses and their operations will continue to be headed by the senior vice presidents Jari Heino (kiosk operations) and Raimo Kurri (trade services).

This de-merger has no implications on operations, personnel or reporting. The new companies correspond well to the actual structure of businesses as well as the established practice. Rautakirja’s demerger is a purely legal and technical process, after which the daily operations as well as their management and the existing central administrative services will continue just as before.

Rautakirja’s business partners have been separately informed of the de-merger.

Additional information: president, Hellevi Kekäläinen, tel. +358 (9) 85281