Neste Oil is selling 73 service stations in Finland in order to increase its focus on refining and sales of cleaner traffic fuels.
The transaction is valued at E118 million, and Neste Oil expects to book a capital gain of approximately E65 million on the sale in its fourth quarter result.
Neste Oil had about 890 outlets in Finland as of the end of September, and the sale covers 73 locations owned by the company. Neste Oil has owned these properties through its subsidiary, Best Chain Ltd, and leased them, with the exception of fuel pump areas, to Ruokakesko Oy. Fuel pumps and related equipment, canopies, and fuel tanks are excluded from the sale.
The sale will not impact the operations of the Neste stations in question, the company said. Neste Oil will continue fuel sales under long-term rental contracts, and Ruokakesko will also become tenants of the new owner, an international investment company owned by Delek Real Estate.
Neste Oil also said that the sale will not affect its unmanned outlets, D-stations serving the needs of commercial drivers, and the sites owned by independent Neste dealers.
Real estates are not part of our core business, and the profit we have made on these assets has not met our targets, says Matti Peitso, Neste Oil’s executive vice president of oil retail. We want to concentrate on fuel sales and use the capital freed up by the sale to develop oil retail and other Neste Oil’s business over the long term.
Neste Oil expects the sale to be completed before the end of October.