Fortum, the Finnish State and Ilmarinen Mutual Pension Insurance Company have
come to a preliminary agreement according to which Fortum will sell its
25%-shareholding in the Finnish transmission system operator Fingrid Oyj. The
State will buy approximately 81% and Ilmarinen approximately 19% of Fortum's
Fingrid shares. The transaction is subject to a final agreement between the
parties and to necessary approvals by their decision-making bodies.
Furthermore, the completion of the transaction requires the approval of the
Finnish Competition Authority.
The sales price for the total amount of shares is EUR 325 million and
consequently, Fortum expects book a gain of roughly EUR 200 million,
corresponding to approximately EUR 0.22 per share once the transaction has been
completed. Fortum estimates that the divestment will be finalised during the
first half of 2011. The proceeds will be used on general corporate purposes.
Fortum is selling its holding in Fingrid as a result of the EU's third energy
market package that calls for the separation of high voltage transmission and
power generation. The package entered into force in September 2009 and,
according to it, Fortum will have to divest its entire ownership in the Finnish
transmission system operator Fingrid by early 2012.
"We are very pleased to have reached this preliminary agreement with the
Finnish State and Ilmarinen. With this divestment, we are also contributing to
the development of a single, liberalised European energy market," says
Executive Vice President Timo Karttinen at Fortum.
Executive Vice President, Corporate Relations and Sustainability
Timo Karttinen, Executive Vice President, Electricity Solutions and
Distribution, tel. +358 10 453 6555
NASDAQ OMX Helsinki