Sydkraft purchases shares in German electricity distributor

Sydkraft has purchased 5 percent of the shares in HEVAG (Hanseatische Energieversorgung Aktiengesellschaft Rostock). HEVAG distributes electricity to approximately 400,000 customers in northeastern Germany. The company's distribution area covers the coastal region of Mecklenburg-Vorpommern, from Lübeck to the German-Polish border, including the island of Rügen. HEVAG has annual revenues corresponding to SEK 2.8 billion (DEM 650 million) and its energy sales amount to 2.5 TWh. The company has 900 employees and is headquarted in Rostock. HEVAG is a regional power company within the PreussenElektra Group, which owns 51.4 percent of the company. Sydkraft now owns 5 percent. The remainder of HEVAG's shares are owned by a number of municipalities in northeastern Germany. With its interest in HEVAG, Sydkraft consolidates its position in northern Germany. Sydkraft already holds 21.8 percent of the shares in Hamburgische Electricitäts-Werke (HEW). "The purchase of a shareholding in HEVAG is part of the Sydkraft Group's expansion in northern Germany. Within a few years, we will be established in six markets in northern Europe, namely Sweden, Norway, Denmark, Finland, Germany and Poland," says Lars Frithiof, Sydkraft's Chief Executive Officer. Per Lindell, President of Sydkraft Eldistribution, has been appointed to represent Sydkraft on HEVAG's Board of Directors. Released by Sydkraft AB (publ), Information, Stieg Claesson