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Eastern European Markets
NEWS RELEASE
February, the 29th, 2008

Supplement to Fortums stock exchange release earlier today:
Key financials of Russian TGC-10

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


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