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Fortum
Fortum's restructuring of Hafslund concluded



Aug 11, 2017

Fortum has today (8/4) concluded the restructuring of its ownership in Hafslund together with the City of Oslo, as originally announced on 26 April 2017.

Fortum has sold its 34.1% stake in Hafslund ASA to the City of Oslo and acquired 100% of Hafslund's Markets business area. Hafslund's Heat business area and the City of Oslo's waste-to-energy company Klemetsrudanlegget AS (KEA) have been combined into one company and Fortum has acquired 50% of the combined company. In addition, Fortum has acquired 10% of Hafslund's current Production business area.

The combined net cash investment of the transactions, including dividend received in May 2017, is expected to be approximately EUR 230 million. Fortum expects to book a one-time tax-free sales gain in its third quarter 2017 results totalling approximately EUR 325 million, which corresponds to EUR 0.36 earnings per share.

Transaction costs of approximately EUR 5 million will be included in the result for the third quarter of 2017.

Hafslund Markets will be a part of the Consumer Solutions division and will be consolidated into Fortum Group from 1 August 2017. The combined company of Hafslunds Heat business area and KEA will be consolidated with 50% minority interest into the results of City Solutions from 1 August 2017. The Hafslund Production business area will be treated as an associated company and reported in the Generation segment.

Fortum Corporation

Fortum Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India, and 62% of our electricity generation is CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on Nasdaq Helsinki.

Contact
Investors and analysts
Rauno Tiihonen
Manager, Investor Relations
tel. +358 10 453 6150
investors@fortum.com
Media
Mari Kalmari
Corporate Press Officer
tel. +358 40 520 1709

For more information:

Organization:
Fortum Corporation
http://www.fortum.com/en/


Link http://electricenergyonline.com/detail_news.php?ID=650318
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