Fortum to sell its Estonian electricity sales and
Fortum and Imatran Seudun Sähkö have today signed an agreement according to which Imatran Seudun Sähkö will purchase Fortum Elekter AS, Fortum’s subsidiary in Estonia. In conjunction, Fortum will give up its share of Imatran Seudun Sähkö Oy. The ownership and proprietary rights will transfer from Fortum to Imatran Seudun Sähkö at the turn of the year.
Fortum Elekter AS has 24,400 electricity transmission and electricity sales customers in Estonia. The company’s sales were EUR 15 million in 2010, and it employs 43 people in Haapsalu and Viimsi.
"The investment in Fortum Elekter offers us a strong foothold in Estonia’s liberalising electricity market," says Jorma Tapaninen, Managing Director, Imatran Seudun Sähkö. "Combining our know-how and experience optimises our opportunities to develop the business of both companies and offer reliable electricity distribution and modern services to our customers in both countries."
"Fortum Elekter is a company with good local management, solid know-how and a high level of customer satisfaction," notes Ari Koponen, Vice President, Fortum Distribution. "However, in our 2010 renewed strategy, we have decided to focus on electricity distribution in the Nordic countries and that is why we are divesting Fortum Elekter."
Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfil the needs for low emissions, resource-efficiency and energy security, and deliver excellent value to our shareholders. Our activities cover the generation, distribution and sales of electricity and heat as well as related expert services.
Fortum’s operations focus on the Nordic countries, Russia and Baltic Rim area. In the future, the integrating European and fast-growing Asian energy markets provide additional growth opportunities. In 2010, Fortum’s sales totalled EUR 6.3 billion and comparable operating profit was EUR 1.8 billion. We employ approximately 10,500 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki. Further information: www.fortum.com
About Imatran Seudun Sähkö:
Imatran Seudun Sähkö Oy is a financially solvent energy Group focusing on electricity production, transmission and sales. Its competitiveness is based on self-sufficient electricity production, high-quality service, and on taking environmental, energy-efficiency and occupational health and safety matters into consideration. All of the Group’s functions have received ISO 9001, ISO 14001 and OHSAS 18001 certificates.
Imatran Seudun Sähkö Oy is privately owned by about 2,300 shareholders. ISS Group’s sales are about 35 million euros and the Group employs directly about 65 people. ISS Group consists of e.g. Imatran Energia Oy and Kaakon Energia Oy, through which ISS participates in many energy production coalitions and projects