Finland's Fortum in $3.5 billion electricity deal

December 12, 2013
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Tapio Kuula, President and CEO of Fortum, the largest electricity distribution operator in the Nordic region, attends the company's press conference in Espoo, Finland, on Thursday Dec. 12, 2013. Fortum Corp. is selling its electricity distribution sector in Finland to international and Finnish investors for 2.55 billion euros ($3.51 billion) and is preparing for the possible sale of similar businesses in Sweden and Norway.. (AP Photo/LEHTIKUVA / Trond H. Trosdahl) FINLAND OUT.

HELSINKI (AP) — Finnish utility Fortum Corp. is selling its electricity distribution sector in Finland to international and Finnish investors for 2.55 billion euros ($3.51 billion) and is preparing for the possible sale of similar businesses in Sweden and Norway.

The company says that once the deal is completed in early 2014, international infrastructure investors First State Investments and Borealis Infrastructure will own an 80 percent stake of the distribution network. The remaining 20 percent will be owned by a consortium of Finnish pension funds.

Fortum said Thursday that the decision came after it launched an assessment in January of "future alternatives."

Fortum has 1.6 million electricity customers in the Nordic countries. It also has operations in the Baltic countries, Poland and Russia.