Fortum completes divestment of its Finnish electricity distribution business
Stock exchange release 24 March 2014 at 15.05 EET
Fortum has today completed the divestment of its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. The transaction has all the necessary regulatory approvals and the customary closing conditions have been met.
The total consideration is EUR 2.55 billion on a debt- and cash-free basis. Fortum will book a one-time sales gain of approximately EUR 1.8-1.9 billion corresponding to approximately EUR 2.0 per share. The final sales gain will be reported in Fortum's Distribution Segment in the first quarter of 2014.
A total of 340 employees will continue their work in the sold business. The electricity distribution of the business' approximately 640,000 customers will also continue without disruption upon closing. Fortum will continue to sell electricity and to develop and offer related services to its electricity retail customers as before.
"We are pleased to close this deal. Warm thanks to our electricity distribution customers and our Distribution employees in Finland for the shared years," says Fortum's CFO Timo Karttinen, who is also responsible for Fortum's Distribution business.
The decision to divest Fortum's electricity distribution business in Finland is linked to the strategic assessment of the company's electricity distribution business' future alternatives last year. Fortum originally announced the completion of the assessment and the sale of the business on 12 December 2013.
Fortum Corporation
Helena Aatinen
Senior Vice President, Corporate Communications
Distribution:
NASDAQ OMX Helsinki
Media
www.fortum.com
Further information:
Fortum Corporate Communications: Helena Aatinen, Senior Vice President, +358 10 45 20480,
Fortum Media Desk +358 40 1982 843
Fortum Investor Relations: Sophie Jolly, Vice President, tel. +358 10 45 32552
Distribution communications: Marina Stenfors, Communications Manager, +358 50 364 4909
Images for media use: http://mediabank.fortum.com:80/public/38ac25b7e188.aspx
Further information on the sold business:
The company continuing Fortum's Finnish electricity distribution business will be the largest electricity distributor in Finland. It is responsible for supplying electricity to 640,000 residential and business customers in South, Southwest and Western Finland as well as Joensuu, Koillismaa and Satakunta. The company employs 340 people directly and up to 1,500 people indirectly all over Finland. It has a strong commitment to building a weatherproof network and expects to invest EUR 100 million annually in developing the grids. The company is owned by Suomi Power Networks Oy, which is owned by a consortium of Finnish pension funds Keva (12.5%) and Elo (7.5%) and international infrastructure investors First State Investments (40%) and Borealis Infrastructure (40%).
Fortum:
Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit was EUR 1.6 billion. We employ approximately 9,600 people. Fortum’s shares are traded on the NASDAQ OMX Helsinki. www.fortum.com