Fortum, the Nordic energy company, has today signed an agreement regarding the sale of its wholly owned Thai subsidiary Laem Chabang Power Company Limited (“LCP”) to Sime Darby Berhad, a company incorporated in Malaysia. The transaction is yet another step forward in Fortum´s strategy of focusing on its core businesses in the Nordic area.
The total consideration for the transaction is approximately EUR 82 million; comprising EUR 30.4 million for 100% of the equity plus EUR 52 million of interest-bearing net debt. Fortum will book a small capital gain on the sale. Completion of the sale is conditional on approval of relevant authorities. Fortum has also made an agreement on continuing the operation and maintenance of LCP’s power plant.
Fortum established LCP in 1997 to develop, construct, own and operate a 103 MWpower and 50 t/hsteam gas fired power plant. The plant started commercial operations in July 2001 and sells power to the Electricity Generating Authority of Thailand as well as power and heat to a number of industrial customers. The power plant is located in Laem Chabang industrial estate 120 km South East of Bangkok. The net sales of LCP totalled EUR 27 million in January – September 2002 .
Sime Darby is one of Southeast Asia’s largest multinational conglomerates. Sime Darby is listed on the Kuala Lumpur Stock Exchange, having core business activities in motor vehicle and heavy equipment distribution, plantations, property, tyre manufacturing and energy industries.
For further information, please contact:
Tapio Kuula, President, Power and Heat Sector, tel. +358 10 452 4112
Esko Salosaari, Vice President, Fortum Energy Solutions, tel. +358 10 453 3050