BREAKTHROUGH FOR FORTUM IN NORWAY AND RUSSIA

Fortum Oyj and E.ON AG have agreed on a swap of assets at a total value of nearly EUR 800 million. The transactions will substantially strengthen Fortum´s position in its focus area, the Nordic countries and the Baltic rim.

 

Fortum will acquire 21.4 % of the shares in Hafslund ASA, the second biggest electricity company in Norway with 600 000 sales customers, 550 000 distribution customers and about 3 TWh of hydro power production. In addition, Fortum will acquire all the shares in Ostfold Energi Nett AS, Ostfold Energi Kraftsalg AS and Ostfold Energi Entreprenor AS with a total of 95 000 sales and distribution customers, and 49 % of Fredrikstads Energi AS with 80 000 customers. The Norwegian acquisitions also include some other minority holdings.

 

Fortum will further acquire 9,3 % of the shares in AO Lenenergo, the largest utility company in north-western Russia with some 1.3 million electricity customers and a production capacity of 14 TWh of electricity and 26.3 TWh of heat. As a result, Fortum´s share in Lenenergo will rise to 15.7 %.

 

Fortum will sell its power plants in Burghausen, Germany and Edenderry, Ireland to E.ON. E.ON will also acquire the shares and business of Fortum Distribution Småland AB, an electricity distribution company in southern Sweden with some 43 000 customers.

 

To balance the swap, Fortum will pay a total consideration of EUR 150 million to E.ON. The asset swap will not have any significant impact on Fortum’s income statement or balance sheet.

 

Fortum and E.ON have also agreed that Fortum will withdraw its complaint against the permission of the E.ON and Ruhrgas merger.

 

The transactions are expected to be closed by April 1, pursuant to authority approvals.

 

Fortum will arrange a press conference on the deal today at 2.30 p.m. at its Keilaniemi head office.

 

Fortum Corporation

 

Carola Teir-Lehtinen

Senior Vice President, Corporate Communications

 

 

Distribution:

Helsinki Exchanges

Key media

 

 

For further information, please contact:

Mikael Lilius, President and CEO, tel. +358 10 452 9100

Tapio Kuula, President, Power and Heat Sector, tel. +358 10 452 4112