Fortum is likely to complete the divestment process for a consideration of €2.55bn on a debt- and cash-free basis during the first quarter of 2014 and the transaction is subject to regulatory approvals and customary closing conditions.
As part of the transaction, 320 employees will be transferred with the business at closing with existing terms of employment with Fortum.
The divesture decision, which is part of the company’s assessment of electricity distribution business’ future alternatives, will not have effect on the company’s around 640,000 distribution customers, which will be transferred with the business with existing terms upon completion.
Fortum is likely to record a one-time sales gain of €1.8bn to €1.9bn corresponding to around €2 per share in its Electricity Distribution and Sales Division in the first quarter 2014 financial results.
The company is also considering a possible sale of the Swedish and Norwegian electricity distribution businesses.
Image: Fortum will sell its electricity distribution business in Finland. Photo: courtesy of Fortum.
