ENP Newswire - 02 July 2014
Release date- 01072014 - Fortum has today completed the divestment of its Norwegian heat business to iCON Infrastructure Partners II, L.P. fund originally announced on 9 April 2014.
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 distribution businesses in Norway. The transaction was completed at the end of May 2014.
The total consideration including both deals is approximately EUR 340 million on a debt- and cash-free basis. As announced in 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. The delivery of heat and cooling to customers in Norway will continue without disruption following the transaction and all current employees will continue their work in the business. Fortum focuses in its heat business on larger urban areas providing the possibilities to develop combined heat and power (CHP) production.
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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.