6 September 2010
Fortum divests minority holding in Russian electricity sales company to INTER
Fortum Corporation and the Russian INTER RAO UES have signed an agreement
according to which Fortum will divest its approximately 31% holding in JOINT
STOCK COMPANY "SAINT-PETERSBURG SALE COMPANY" (JSC "SSC") to INTER RAO UES. The
divestment will not have a significant impact on Fortum's financial results and
the parties have agreed not to disclose the value of the transaction.
The decision to divest follows Fortum's strategy to concentrate primarily on
power generation and heat businesses in Russia. JSC "SSE" is an electricity
sales company operating mainly in the St. Petersburg and Leningrad regions. It
was spun off from OAO Lenenergo in 2005 as part of the Russian power sector
reform, which required unbundling of power generation, distribution and
electricity sales businesses. Fortum divested its share of the distribution
business also originating from Lenenergo in 2007.
Kari Kautinen, Vice President, M&A, Fortum, +358 50 453 2174