Fortum completed divestment process


Finland’s Fortum completed the divestment of its Norwegian electricity distribution business to the Hafslund Group, listed on the Oslo Stock Exchange on Friday in a move that will impact on its combined heat and power interests.

Last month, 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.

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.

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