Fortum completed the divestment of its Finnish electricity distribution business to Suomi Power Networks Oy, owned by a consortium of Finnish and international investors. The transaction has all the necessary regulatory approvals and the customary closing conditions have been met.
The total consideration is $3.5 billion on a debt- and cash-free basis. Fortum will book a one-time sales gain of about $2.48 billion corresponding to about $2.75 per share. The final sales gain will be reported in Fortum’s Distribution Segment in the first quarter of 2014.
A total of 340 employees will continue their work in the sold business. The electricity distribution of the business’ nearly 640,000 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 as before.
The decision to divest Fortum’s electricity distribution business in Finland is linked to the strategic assessment of the company’s electricity distribution business’ future alternatives last year. Fortum originally announced the completion of the assessment and the sale of the business on December 12, 2013.