Birka Energi acquires Sigtuna Energi

Birka Energi acquires Sigtuna Energi The municipality of Sigtuna and Birka Energi has entered into an agreement concerning the purchase by Birka Energi of the municipality's shares in Sigtuna Energi AB. Sigtuna Energi AB in turn owns, inter alia, 50 per cent of the shares in Brista Kraft AB. The purchase price for the shares is MSEK 345. The agreement is subject to approval of the assembly of the municipality of Sigtuna and the Swedish competition auhtority. Sigtuna Energi AB owns and operates the local grid - with approximately 16,000 subscribers - and the district heating facilities within the municipality of Sigtuna. Brista Kraft produces electricity and district heating within the municipalities of Sigtuna and Upplands Väsby. The number of electricity subscribers of Brista Kraft are approximately 34,000, and electricity sales is approximately 800 GWh. Sales of district heating corresponds to approximately 480 GWh. "We are very pleased to be able to finally conclude this transaction, " says Peter Kockum, the chairman of the assembly of the municipality of Sigtuna. The sale of the shares of Sigtuna Energi AB will result in a substantial reinforcement of the finances of the municipality of Sigtuna. This reinforcement will be effected through decreased interest costs, and through reduction of the risk exposure as the guarantees for business provided by the municipality are removed. The future for these well kept companies will require major investments in new technologies and further development of the businesses to be carried out on a market exposed to fierce competition. Such investments will require a capable owner with a long term dedication and sufficient resources. The municipality of Sigtuna is not such an owner as the residents of the municipality of Sigtuna and the employees of Sigtuna Energi AB and Brista Kraft AB are entitled to expect. The municipality has in the conclusion of the transaction ensured that the development of the tariffs are warranted, as well as the development within the environmental area . The CEO of Birka Energi, Tomas Bruce, is of the opinion that Sigtuna Energi is a well managed company that will fit very well within the business of Birka Energi. "At the same time this transaction is one further step in the structural redefinition of the energy production and distribution within the region. Through these structural changes the energy subscribers will be ensured energy deliveries on a long term basis, at competitive prices. For these reasons it is most satisfying that we now have been able to come to an agreement with the municipality of Sigtuna." Birka Energi is one of Scandinavia's largest energy companies with approx. 850,000 customers, electricity sales of 26 TWh, heating sales of 8 TWh and a turnover of approx. SEK 13 billion. The city of Stockholm and Fortum Abp each own 50% of Birka Energi. Additional information can be provided by: Peter Kockum, chairman of the assembly of the municipality of Sigtuna, phone +468-591 260 01, +4670-656 46 78 Christer Sandberg, CFO, municipality of Sigtuna, phone +468-591 260 50, +4670-511 76 85 Tomas Bruce, CEO and managing director of Birka Energi AB (publ), phone +4670-771 79 60 Merril Boman, Executive VP Communications Birka Energi AB (publ), phone +4670-590 79 75 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/21/20000321BIT00390/bit0001.doc http://www.bit.se/bitonline/2000/03/21/20000321BIT00390/bit0002.pdf