Fortum and Hafslund Infratek to combine their infrastructure operations
Fortum Corporation Stock Exchange Release 24 October 2008 at 9.00 EET
Fortum and Hafslund Infratek to combine their infrastructure operations Fortum receives 33 % stake in the new combined company Fortum and (Norwegian) Hafslund Infratek ASA have signed a contract according to which they will combine their businesses of construction and operating of infrastructure in Sweden, Finland and Norway at the beginning of 2009. Fortum will receive newly issued shares in Hafslund Infratek ASA and 33% ownership in the new combined company. Hafslund ASA, currently the majority shareholder of Hafslund Infratek, will hold 43.3% of the shares. The remaining shares are owned by institutional and private shareholders. As part of the transaction Fortum Distribution will outsource its in-house network construction activities in Värmland/Skaraborg and West-Coast in Sweden. Furthermore, Distribution is planning to outsource the remaining network construction areas in Gävleborg/Dalarna and Stockholm. Significant growth within the field of building and operating energy related infrastructure demands larger and more efficient suppliers. Joining forces will enable Hafslund Infratek better possibilities to grow and compete in the markets. The Fortum operations that will be combined with Hafslund Infratek generated sales of approximately EUR 130 million for the first nine months of 2008, and the operating profit was approximately EUR 5 million. The operations in the scope have mainly been reported in the Power Generation segment. The transaction concerns some 1,000 Fortum Service employees who will move over to the new combined company, approximately 700 in Sweden, 150 in Finland and 150 in Norway. In Fortum Distribution, the transaction concerns some 140 employees in Sweden. The new combined company will be a leading Nordic infrastructure service supplier. It provides services within the fields of building, operating and securing critical infrastructure, primarily energy carriers, telecom and security systems. It employs 2,500 people in Norway, Sweden and Finland. A letter of intent to this agreement was signed in June. The final agreement is subject to approval by the Board of Directors of Fortum Corporation prior to an Extraordinary General Meeting of Hafslund Infratek ASA. The transaction is to become effective as of 1 January 2009. Fortum Corporation Maria Romantschuk SVP Corporate Communications Further information: Markku Vauhkonen, President, Fortum Service, tel. +358 40 352 3322 Håkan Grefberg, President, Fortum Distribution, tel. + 46 70 683 07 00