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
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.
Senior Vice President, Corporate Communications
NASDAQ OMX Helsinki
Fortum Corporate Communications: Helena Aatinen, Senior Vice President, +358 10
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
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’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