FORTUM CORPORATION STOCK EXCHANGE RELEASE E 25 NOVEMBER 2005
FORTUM ACQUIRES A 25% STAKE IN KOLENENERGO
- Agreement on energy co-operation with Interros
Fortum has agreed to acquire 24.83% of the shares in Russian Kolenergo from MMC
Norilsk Nickel, a major Russian metals and mining company, for an undisclosed
sum. The transaction also includes a corresponding proportion of shares in other
companies being incorporated as a result of the unbundling of Kolenergo. Fortum
will obtain 23.33% of Kolenergo's and its incorporated companies' voting rights.
The transaction is estimated to take place during the first quarter of 2006
after formal approvals by the seller's board of directors and relevant authorities.
Kolenergo is a major power company located in the Kola region of North-West
Russia with net sales of approximately 300 million USD in 2004. Kolenergo has a
hydro power capacity of 1,593 MW with an annual hydro generation of some 6.57.2
TWh. The volume of electricity sales and transmission totals approximately 11
TWh annually and the company has some 200,000 electricity customers. Kolenergo's
annual heat sales total some 4 TWh.
As part of the major Russian power market reform, the generation assets of
Kolenergo, Lenenergo and Karelenergo are to be merged to a Territorial
Generation Company, TGC-1. Kolenergo's hydro power represents 55% of TGC-1's combined hydro
power capacity of 2,874 MW.
In addition, Fortum and Interros, a major Russian investment company and the
largest shareholder in Norilsk Nickel, have signed a co-operation agreement
concerning the power sector in North-West Russia in relation to future operation
and maintenance of the wholesale power companies that may be acquired by
"This is another important step for Fortum in Russia. The transaction further
strengthens our position in TGC-1 and we are very pleased to increase our share
of especially hydro power assets in the company", says Senior Vice President
Tapio Kuula of Fortum.
Senior Vice President, Corporate Communications
Tapio Kuula, Senior Vice President, tel. +358 10 452 4112
Helsinki Stock Exchange