Fortum not yet in agreement on TGC-1 hydro power - If restructuring proceeds, ready to take a minority stake in Fennovoima nuclear project
FORTUM CORPORATION STOCK EXCHANGE RELEASE 24 June 2015 at 9:00 EET
As announced earlier, Fortum is negotiating on the restructuring of the territorial generating company, TGC-1. The negotiations have not, however, come to conclusions, that would make it possible for Fortum to decide on its participation in the Fennovoima nuclear power project. Should the negotiations proceed later, and Fortum received the majority ownership in TGC-1 hydro assets, Fortum would still be ready to participate with a minority share (max 15%) in the Finnish Fennovoima nuclear power project on the same terms and conditions as the other Finnish companies currently participating in the project. It is not possible to estimate the negotiations schedule.
"We are continuing negotiations with all parties involved but it will take its time. For Fortum, the TGC-1 restructuring and the Fennovoima project are a comprehensive package where both parts need to be completed," says Fortum's Interim CEO and CFO Timo Karttinen.
Fortum, Gazprom Energoholding and Rosatom signed in December 2014 a protocol to start a restructuring process of the ownership of TGC-1 in Russia. As part of restructuring, Fortum would found a jointly-owned company with Rosatom for TGC-1's hydro assets. Fortum's goal is to transfer its current, 29.45% stake in TGC-1 to a majority stake in the joint venture.
In case the restructuring was successfully completed, Fortum has announced that it would be ready to participate with a minority share in Fennovoima’s nuclear power project, which also Rosatom is participating, on the same terms and conditions as the other Finnish companies currently participating in the project.
Senior Vice President, Communications
Kari Kautinen, SVP, Strategy, Mergers and Acquisitions, Fortum,
tel. + 358 10 45 32174
Media: Helena Aatinen, SVP, Communications, Fortum,
tel. + 358 10 45 20480
Investors and analysts: Sophie Jolly, VP, Investor Relations, Fortum,
tel. +358 10 45 32552
Link to background information on Fortum's web site: Fortum in Russia
Fortum’s purpose is to create energy that improves life for present and future generations. Fortum’s expertise is in CO2-free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum’s main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totalled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com