Valora Services divestment successfully completed
Valora successfully completed the sale of its Services division (which is engaged in press wholesaling and logistics activities) to Thomas Kirschner (the majority shareholder in PVG) with effect from July 31, 2014. Both Valora and Thomas Kirschner are convinced that the transaction did result in an ideal and sustainable industry solution. Press deliveries to Valora's network of more than 1 200 outlets in Switzerland and Luxembourg (k kiosk, avec. and P&B) will now be carried out by PVG. A seamless transition process is assured, since PVG will be taking on the staff hitherto employed by Valora Services.
Major transformation process at Trade division
Valora's Trade division is engaged in a major transformation process. The resulting extraordinary costs as well as the operating results in the classic product categories in selected countries, have required impairment charges of CHF 17 million, which will be booked to the Group's first-half 2014 results. As a consequence of these extraordinary charges, Valora's consolidated EBIT for the first six months of 2014 will be no less than break-even. In the second half of 2014, Valora expects to incur further extraordinary charges of CHF 10-15 million relating to the Valora Group but mainly to its Trade division.
Substantial cash inflow and earnings from discontinued operations
The enterprise value of CHF 80 million realised from the sale of Valora Services has generated earnings from discontinued operations amounting to CHF 34 million and a cash inflow of CHF 63 million after transaction cost, which will have a positive effect on Valora's full-year 2014 results.
On August 28, 2014, Valora will publish its detailed results for the first Half-Year 2014 and will also report on the implementation of its strategic initiatives.