Vattenfall makes $1.95bn Finland sale

Vattenfall has announced that it will sell its electricity distribution and district heating businesses in Finland to a consortium of investors in a deal worth $2bn.

Vattenfall is in the process of slimming down its operations, aiming to cut an annual $870m from costs by the end of 2013 as it focuses on core activities in Sweden, Germany and the Netherlands.

Vattenfall, one of Europe‘s top power firms, said it was selling its electricity distribution network — the second largest in Finland — and Vattenfall Lampo Oyj, a district heating supplier, in a deal with an enterprise value of $2bn.

The buyer is Lakeside Network Investments, a consortium made up of 3i Infrastructure Plc, 3i Group Plc, GS Infrastructure Partners and Ilmarinen Mutual Pension Insurance Co.

The deal is one of a number in recent weeks by Vattenfall.

This week, it completed the sale of its Polish electricity sales and distribution company to Poland’s Tauron Polska Energia SA for around $1.1 billion on an enterprise value basis.

At the end of last month it agreed to sell part of its electricity distribution and district heating networks in Hamburg to the city for $618m.

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