12 April 2002 – Fortum boosted its slice of the Finnish distribution network when it announced that it had bought Paloheim’s 50 per cent share in the Elnova Group, comprising of Uudenmaan Energia and Uudenmaan Sähköverkko and also acquired Paloheimo’s 50 per cent share in Riihimäen Kaukolämpö.
The deal is worth €81m, but still needs approval from the competition authorities. After the transaction, the market share of Fortum’s distribution network business in Finland will increase from 11 per cent to 15 per cent.
The deal means that Elnova is now fully owned by Fortum.
Fortum (IVO) established Elnova together with Paloheimo in 1995. In 2001, Elnova’s net sales totalled €74m and the company employed about 60 people. Uudenmaan Energia sells electricity to small-scale customers. In 2001, the total volume of the company’s electricity sales was in excess of 1.24TWh.
The distribution area of Uudenmaan Sähköverkko covers the areas of Vihdin Sähkö, Lohjan Sähkö and Paloheimon Sähkölaitokset (Paloheimo electricity works). In 2001, the total volume of electricity transmitted in the distribution network was 1.6TWh. Riihimäen Kaukolämpö has district heat and natural gas businesses, and its sales volume totals about 0.17TWh a year.