Fortum has today completed the divestment of its Norwegian electricity distribution business to the Hafslund Group, listed on the Oslo Stock Exchange. The transaction has all the necessary regulatory approvals and the customary closing conditions have been met.
In April, Fortum also announced the divestment of its heat businesses in Norway to iCON Infrastructure Partners II, L.P. fund. The transaction is estimated to be completed by the end of June 2014.
The total consideration including both deals is EUR 340 million on a debt- and cash-free basis of which approximately EUR 200 million relates to electricity distribution transactions, which was completed with Hafslund today. As announced 8th of April, Fortum expects to book a one-time sales gain totalling approximately EUR 70 million from all Norwegian transactions, corresponding to approximately EUR 0.08 per share, in its second quarter 2014 results. The final sales gain will be reported in Fortum's Distribution segment as well as in Heat, Electricity Sales and Solutions segment.
A total of 84 employees will continue their work in the sold business. The electricity distribution of the business' approximately 103,000 customers will also continue without disruption upon closing. Fortum will continue to sell electricity and to develop and offer related services to its electricity retail customers in Norway as before.
"We are pleased to close this deal. Warm thanks to our electricity distribution customers and our Distribution employees in Norway for the shared years," says Fortum's CFO Timo Karttinen, who is also responsible for Fortum's Distribution business.
The decision to divest Fortum's Norwegian electricity distribution business is linked to the strategic assessment of the company's electricity distribution business' future alternatives last year. In its heat business, Fortum will focus on bigger urban areas providing the possibilities to develop combined heat and power (CHP) production.
Senior Vice President, Corporate Communications
Timo Karttinen, CFO, tel. +358 10 453 6555
Fortum Media Desk +358 40 1982 843
NASDAQ OMX Helsinki
Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2013, Fortum’s sales totalled EUR 6.1 billion and comparable operating profit was EUR 1.6 billion. We employ approximately 8,800 people. Fortum’s shares are traded on the NASDAQ OMX Helsinki. www.fortum.com