FORTUM CORPORATION STOCK EXCHANGE RELEASE 30 May 2014 at 14.00 EEST
Fortum has today completed the divestment of its Norwegian electricity
distribution business to the Hafslund Group, listed on the Oslo Stock Exchange.
The transaction has all the necessary regulatory approvals and the customary
closing conditions have been met.
In April, Fortum also announced the divestment of its heat businesses in Norway
to iCON Infrastructure Partners II, L.P. fund. The transaction is estimated to
be completed by the end of June 2014.
The total consideration including both deals is EUR 340 million on a debt- and
cash-free basis of which approximately EUR 200 million relates to electricity
distribution transactions, which was completed with Hafslund today. As
announced 8th of April, Fortum expects to book a one-time sales gain totalling
approximately EUR 70 million from all Norwegian transactions, corresponding to
approximately EUR 0.08 per share, in its second quarter 2014 results. The final
sales gain will be reported in Fortum's Distribution segment as well as in
Heat, Electricity Sales and Solutions segment.
A total of 84 employees will continue their work in the sold business. The
electricity distribution of the business' approximately 103,000 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 in Norway as before.
"We are pleased to close this deal. Warm thanks to our electricity distribution
customers and our Distribution employees in Norway for the shared years," says
Fortum's CFO Timo Karttinen, who is also responsible for Fortum's Distribution
The decision to divest Fortum's Norwegian electricity distribution business is
linked to the strategic assessment of the company's electricity distribution
business' future alternatives last year. In its heat business, Fortum will
focus on bigger urban areas providing the possibilities to develop combined
heat and power (CHP) production.
Senior Vice President, Corporate Communications
Timo Karttinen, CFO, tel. +358 10 453 6555
Fortum Media Desk +358 40 1982 843
NASDAQ OMX Helsinki
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 8,800 people. Fortum’s shares are
traded on the NASDAQ OMX Helsinki. www.fortum.com