ELKO adjusts the Group's legal structure Continuous feedback from ELKO Group's financial stakeholders clearly indicates that the Group's business in Ukraine is currently associated with increased financial and security risks, adversely affecting ELKO Group's overall risk profile. Therefore, starting from February 20, 2023, a subsidiary in Ukraine exits the ELKO Group legal structure and continues its operations as a franchisee. Riga, 2023-03-03 12:50 CET --
On February 20, 2023 (registration completed on March 3, 2023), Akciju Sabiedrība ELKO Grupa (ELKO Group) sold a 100% stake in ELKO Ukraine LLC. It is expected that the entity under its new owners will continue to serve the market, retaining the ELKO brand based on the franchise agreement.
"Given the current circumstances in the Ukrainian market, ELKO Group is satisfied with the achieved business results. However, in spite of excessive risk management efforts from the Group's side, we continue to see concerns from our stakeholders – banks, insurers, and vendors - about the further sustainability of these operations. In order to preserve the ELKO Group's hard-earned financial credibility and solid credit profile in markets outside Ukraine, we see the necessity to divest the Ukrainian entity. At the same time, we sincerely hope for continued cooperation in the new relationship model and trust in ELKO Ukraine's ability to serve the market, retaining high business standards established over ELKO's 24-year operation in Ukraine," comments Svens Dinsdorfs, CEO of ELKO Group.
Since March 2022, ELKO Ukraine LLC's business operations in Ukraine have recovered and have generated commendable business results in 2022. Despite the complex circumstances, ELKO continues to provide the Ukrainian market with IT and consumer electronics, providing a broad range of goods from 150 vendors to more than 800 customers.
About ELKO
The ELKO Group is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 350 IT manufacturers. The company provides a wide range of products and services to more than 10 000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 12 countries in Europe and Central Asia.
More information:
www.elkogroup.com
LinkedIn: https://www.linkedin.com/company/elko-group
Facebook: https://www.facebook.com/elkogroup/
Twitter: @ELKO_Group
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Mara Skudra
CMO
ELKO Group
4, Toma Street, Riga, Latvia, LV-1003
mobile: + 371 26545876
mara.skudra@elkogroup.com
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