Under the terms of the agreement, 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 end of 2011.

Imatran Seudun Sähkö managing director Jorma Tapaninen said the investment in Fortum Elekter offers the company a strong foothold in Estonia’s altering electricity market.

"Combining our know-how and experience optimizes our opportunities to develop the business of both companies and offer reliable electricity distribution and modern services to our customers in both countries" added Tapaninen.

Fortum Elekter has 24,400 electricity transmission and electricity sales customers in Estonia.