Stock exchange release

Fortum, the Finnish State and Ilmarinen into preliminary agreement over the sale of Fortum's Fingrid shares

26 January 2011, 14:03 EET

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.

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

Further information:
Timo Karttinen, Executive Vice President, Electricity Solutions and Distribution, tel. +358 10 453 6555

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