29.2.2008 12:03

Fortum participated in a share auction conducted on 28th February to acquire a controlling stake in the listed Russian TGC-10. The key financials of TGC-1 are as follows:

MEUR	Last twelve months (LTM) as of Q3/07	2006	2005
Sales	590	493	430
EBITDA	55	42	55
EBIT	26	15	29
Net profit	12	8	19
Balance sheet total	677	574	542
Interest-bearing net debt	61	40	-3

 

Fortum expects that the transaction will be earnings diluting for two years.

The total consideration, EUR 1.7-2.7 billion, is to be financed with long-term bank loans. Fortum’s pro forma net debt/EBITDA will be around 2.8x at acquisition assuming Fortum will reach 100% ownership of TGC-10. Fortum’s offer per TGC-10 share was 111.8 rubles.

 

On a pro forma basis, key features of FortumÕs capital structure following the transaction are:

	Current 1)	Pro forma 2)
Capital employed	13,544	16,412
Interest-bearing net debt	4,466	5,954
EBITDA	2,298	2,353
Adjusted net debt/EBITDA 3)	2.2	2.8

1) Fortum 2007

2) Pro forma is based on full-year 2007 of Fortum and LTM Q3/2007 of TGC10 assuming 100% ownership based on bidding price.

3) Based on EBITDA excluding capital gain from sale of Fortum's holding in Lenenergo amounting to 232 MEUR.

 

Fortum Corporation

Mikael Lilius, President and CEO, Fortum Corporation, +358(0)10 45 29100
Tapio Kuula, Senior Vice President, Fortum Corporation, +358(0)10 54 24112