Stockholm’s city council decided in its meeting late last night,
7 September 1998, to approve the incorporation of IVO Energi AB’s wholly-owned subsidiary Gullspång Kraft AB and Stockholm Energi AB, which is owned by the city of Stockholm. IVO Energi AB is Imatran Voima Oy's (IVO) wholly owned Swedish subsidiary.
The decision means that the establishment of the new company, Birka Energi AB, is proceeding according to plan. The intention is to start the operations of Birka Energi by the end of the year.
In August, EU’s competition authorities approved the establishment of Birka Energi, and IVO Energi AB received the remaining Gullspång shares in August. At the moment, all Gullspång’s shares are owned by IVO Energi AB.
IVO and the city of Stockholm will each own half of Birka Energi. The parties have proposed Stockholm Energi’s present Managing Director and Group CEO Tomas Bruce to be Managing Director of the new company. Gösta Lindh, current Managing Director of IVO Energi and Gullspång, is proposed for the post of Deputy Managing Director. Fortum’s CEO Heikki Marttinen has been proposed as Chairman of the Board of Directors.
The new company will be the largest energy company in the Swedish market in respect of its number of customers, which is about 820,000. The aim of the incorporation of Birka Energi is to strengthen the position of both the present companies in the deregulating and increasingly competitive energy markets.
Five operative divisions are being planned for the new company:
Electricity production, Electricity sales, Networks and metering, District heating, Operation and maintenance and engineering.
The synergetic advantages of the new company are obtained through the rationalisation of production resources and power sales, reduction in administrative costs, intensification of marketing communications, common utilisation of information technology and product development, and the improvement of the market position and the functioning of customer service. The synergetic advantages are estimated to total about SEK 5 billion (FIM 3.5 billion).
Key figures of Birka Energi
Electricity production (normal year)
Hydro power 10.3 TWh
Nuclear power 10.6 TWh
Combined electricity and heat production 0.9 TWh
Electricity production, total 21.8 TWh
Sales and distribution (for 1997)
Electricity sales 26.3 TWh
Heat 7.1 TWh
Electricity networks (turnover) SEK 3.6 billion
Total turnover SEK 13.0 billion
Number of personnel on 1 January 1998 2.500
(The figure does not include the personnel of Birka Service and Birka Teknik&Miljö)
Imatran Voima Oy
Kalervo Nurmimäki, CEO, IVO
tel. +358 9 8561 6023
Helsinki Stock Exchange
The information contained herein is not for publication or distribution to persons in the United States of America. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended. The materials do not constitute an offer of securities for sale in the United States; the securities may not be offered or sold in the United States absent registration or an exemption from registration; and any public offering of securities to be made in the United States will be by means of a prospectus that may be obtained from the issuer or the selling security holder and that will contain detailed information about the company and the management, as well as financial statements.