Stock exchange release

Fortum to divest heat operations outside Stockholm in Sweden

12 December 2010, 15:02 EET

Fortum Corporation Stock exchange release 12 December 2010 at 15.00 EET

Fortum Corporation
Stock exchange release
12 December 2010 at 15.00 EET

Fortum to divest heat operations outside Stockholm in Sweden

Fortum and Macquarie-managed funds have signed an agreement according to which Fortum will divest its district heat operations and heat production facilities outside the Stockholm area in Sweden. The sales price is approximately EUR 200 million. The major part of the divested operations is owned by Fortum's subsidiary Fortum Värme in which the city of Stockholm has a 50% economic interest. Fortum expects to recognise a sales gain with a minor effect on EPS in the first quarter 2011. The sales gain is presented in Heat Division.

Fortum is divesting the operations in order to be better able to concentrate on combined power and heat production and on developing its district heat businesses in the Stockholm area. The transaction comprises 12 different heat operations including both municipal district heating and industrial partnerships. All the operations are located in the central parts of Sweden from east to west and three are co-owned with the local municipality. The heat sales in 2009 were 1.3 terawatt-hours. In 2009, the businesses' sales totaled EUR 72 million and EBITDA was EUR 28 million. Eighty-three employees will move over to the new owner after the transaction has been finalised.

The divestment is pending on the approval of the Stockholm City Board and the Swedish Competition Authority. Fortum expects to finalise the divestment during the first quarter of 2011.

"We are very pleased to find a world leading company in investment, ownership and management of infrastructure assets as the new owner for our heat operations outside Stockholm. Macquarie has the ability and opportunity to develop them further. In line with our strategy, we can now concentrate on combined heat and power production and on further developing district heating in the capital area," says Per Langer, Executive Vice president, Fortum.

Macquarie-managed funds have a strong track record in responsible investment in regulated utilities and infrastructure globally, including investments in Thames Water, the UK's largest water and sewerage company, and Thermal Chicago Corporation, the world's largest district cooling system. Macquarie-managed funds have also invested in infrastructure in Sweden including the Arlanda Express, the high-speed rail service linking Arlanda Airport to Stockholm's city centre.

Fortum Corporation
Anne Brunila
Executive Vice President, Corporate Relations and Sustainability

Further information:
Per Langer, Executive Vice President, Fortum
Jens Bjöörn, Head of Communications, Fortum Värme, tel. +46 702 98 41 25

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