Fortum acquires Paloheimo Oy’s 50% share in the Elnova Group, which is composed of Uudenmaan Energia Oy and Uudenmaan Sähköverkko Oy. After this transaction, Elnova will be fully owned by Fortum. Fortum will also acquire Paloheimo Oy’s 50% share in Riihimäen Kaukolämpö Oy. The City of Riihimäki owns the remaining 50%.
The total value of these transactions is EUR 81 million, and they will be subject to the permission of the competition authority.
This acquisition will strengthen the position of Fortum’s electricity distribution and sales in this important business area. After the transaction, the market share of Fortum’s distribution network business in Finland will increase from 11% to some 15%.
Fortum (IVO) established Elnova together with Paloheimo in 1995. "The network area of Uudenmaan Sähköverkko borders on Fortum’s area in the Salo region and in Central Uusimaa in the east. This arrangement will extend Fortum’s uniform distribution network, which is a significant asset in the electricity distribution business," reports Tapio Lehtisalo, President, Fortum Distribution. Furthermore, the electricity sales to some 100,000 customers will be transferred to Fortum Markets.
”Paloheimo wants to streamline its structure and focus its operations. As a family-owned company, we have limited resources to invest in further development of operations in the long run,” Juha Järvinen, Managing Director of the Paloheimo Group says.
Elnova is composed of Uudenmaan Energia Oy and Uudenmaan Sähköverkko Oy. In 2001, Elnova’s net sales totalled EUR 74 million and the company employs about 60 people.
Uudenmaan Energia Oy sells electricity to small-scale customers. In 2001, the total volume of the company’s electricity sales was more than 1,240 gigawatt-hours.
The distribution area of Uudenmaan Sähköverkko Oy covers the earlier areas of Vihdin Sähkö Oy, Lohjan Sähkö Oy and Paloheimon Sähkölaitokset (Paloheimo electricity works). In 2001, the total volume of electricity transmitted in the distribution network was 1,600 gigawatt-hours.
Riihimäen Kaukolämpö Oy carries on district heat and natural gas business, and its sales volume totals about 165 gigawatt-hours each year.
Senior Vice President, Corporate Communications
Tapio Kuula, Sector Head, Fortum Corporation, tel. +358 10 45 24 112
Tapio Lehtisalo, President, Fortum Distribution, tel. +358 10 45 57101