Birka Energi and Vattenfall exchange ownership of electricity distribution in Avesta and Ryssa

Birka Energi and Vattenfall exchange ownership of electricity distribution in Avesta and Ryssa Birka Energi and Vattenfall have signed a letter of intent concerning the exchange of Vattenfall's 63 percent share holding in AB Ryssa Elverk for Birka Energi's completely owned AB Kallströmmen with subsidiary AB Avesta Elnät. The deal also includes exchange of certain machinery and technical installations. The deal is intendeed to be carried through on 1 July, provided approvals by Birka Energi's and Vattenfall's Boards of Directors and by the Swedish Competition Authority. Following a period of acquisitions and expansion, both Birka Energi and Vattenfall now are in a phase of consolidation. The deal now agreed upon will provide both companies with a more rational ownership, thereby promoting a more efficient structure of the Swedish electricity distribution system. AB Ryssa Elverk with head office in Mora has 24 300 electricity network customers and some 60 employees. When the deal has been carried through, Birka Energi will own 97 percent of the company. AB Avesta Elnät has 14 200 customers, and 8 persons employed by Birka Nät AB work within network area of Avesta Elnät. In accordance with the deal, these employees will transfer to Vattenfall. For further information, please contact Bo Englund, Birka Nät AB +46 706 54 11 96 Per Hallberg, Vattenfall AB, + 46 520 88 120 Birka Energi is a leading Nordic energy company with some 900 000 customers. The company develops enivonment friendly, sustainable energy systems and service for the industry and domestic markets. We meet our customer via two brands: HemEl for the domestic market and Birka Energi for industry customers. The entire company has an environment cerificate according to ISO 14001. Vattenfall's vision is to be a leading European energy company. The Nordic region, Poland and Germany are its domestic markets. Today, Vattenfall generates power and supplies energy solutions to 2.2 million customers in the Nordic region and northern Europe. The largest electricity customers are industrial plants and energy companies. Vattenfall's main products are electricity, heat and natural gas, as well as network, consulting and maintenance services. Vattenfall's net sales in 2000 amounted to almost SEK 32 billion. Sales included 83 TWh electricity and 17 TWh heat. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se