Fortum Corporation STOCK EXCHANGE RELEASE 26 October 2005
FORTUM GROWS IN POLAND
Fortum has signed a contract with the city of Wroclaw in Poland regarding the
acquisition of a majority holding in the city's district heating company MPEC
Wroclaw S.A. Fortum has also issued a public tender offer for all outstanding
shares in the company. The acquisition is an important step in implementing
Fortum's growth strategy. After the acquisition Fortum will have three heating
companies in Poland, with aggregate net sales of more than 110 million euro and
annual heat sales of 3400 gigawatt-hours (GWh).
MPEC Wroclaw is a listed company with net sales of 70 million euro and annual
heat sales of 2100 GWh in 2004. The company employs 260 people.
By virtue of the contract, Fortum undertakes to purchase the preferred and
ordinary shares held by the city that jointly grant a majority in the MPEC
Wroclaw S.A. The city of Wroclaw will sell shares representing 48.7% of the share
capital and 70.1% of the voting rights. Together with a share transaction
completed earlier this year, the acquisition will increase Fortum's holding in
the company to 53.7% of the share capital and 73% of the voting rights.
Fortum has issued a public tender offer for all minority shareholders in the
district heating company as well.
The sales price of each ordinary share is PLN 9.6 and the price of each preferred
share is PLN 13.6. Fortum will pay a total of PLN 275.4 million (i.e. 70.5
million euro) for the shares held by the city of Wroclaw. Fortum will
additionally pay up to PLN 182.6 million (i.e. 46.7 million euro) for the
minority shareholders' holdings if they accept the offer.
According to the legislation applicable to the privatisation of public companies,
the employees of MPEC Wroclaw are entitled to receive 8.6 % of the share capital
as a consequence of the acquisition. Employees may not sell these shares before
two years have passed after the completion of the acquisition. Fortum will
negotiate the purchase of shares with employee representatives.
"Poland is an important market area and we participate actively in the
privatisation of its heat sector. Wroclaw is the fourth biggest city in Poland
and the acquisition of its heat distribution company is an important step to
Fortum", says Senior Vice President Timo Karttinen from Fortum.
Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications
Additional information:
Timo Karttinen, Senior Vice President, Development, Fortum Corporation, phone
+358 10 453 6555, GSM +358 50 453 6555
Risto Riekko, President, Fortum Heat, phone +358 10 453 4485, GSM +358 50 453
4485
Distribution:
Helsinki Stock Exchange
Key media
