Graninge becomes majority owner of Finnish Kainuun Sähkö

Graninge becomes majority owner of Finnish Kainuun Sähkö Graninge AB has increased its holding in Kainuun Sähkö Oyj, based in the city of Kajaani in central Finland. An agreement was signed on Wednesday with three municipalities - Kuhmo, Suomussalmi and Vaala - according to which Graninge is to buy their minority holdings. After the acquisition Graninge will hold just under 51 per cent of the share capital and will thus become a majority owner. Graninge acquired a 26-per cent stake in Kainuun Sähkö in 1997. The remaining owners in the company, aside from Graninge, are the municipalities of Kajaani (37 per cent) and Sotkamo (12 per cent). The purchase price for the current acquisition is more than MEUR 21, which corresponds to nearly MSEK 200. Lars Enslöf, Graninge's Managing Director and CEO, commented that Graninge has now advanced its positions in Finland: "For us it was gratifying that we could reach an agreement and complete the deal, now that the municipalities were willing to sell their shares in this well managed company. The company has recently undergone extensive organisational changes which have strengthened the company's competitiveness. It is also pleasing that we now have a Finnish distribution company, which will be a valuable complement to the hydropower we have in Finland through Graninge Energia Oy. Kainuun Sähkö has 55,000 electricity customers and is the leading seller of green electricity in the Finnish market. Annual electricity sales amount to 900 GWh and the company produces 310 GWh of power and 280 GWh of district heating per year. The deal is subject to the approval of the Finnish competition authorities. For additional information contact: Lars Enslöf, Managing Director, Graninge, +46 8 753 5004 Jean-Rémy Cauquil, Deputy Managing Director, Graninge, +46 8 753 5006 Kalle Karlsson, Corporate Communications Director, Graninge, +46 8 753 6860 Timo Pylvänen, Managing Director, Kainuun Sähkö, +358 50 5574 680 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/01/16/20020116BIT00740/bit0002.doc http://www.waymaker.net/bitonline/2002/01/16/20020116BIT00740/bit0002.pdf