Infrastructure investors line up for Finnish electricity grid sale
Fortum Oyj's sale of its Finnish electricity grid has attracted interest from potential buyers including Hong Kong-based Cheung Kong Infrastructure Holdings Ltd., Canada's Borealis Infrastructure, Macquarie Group Ltd.'s European infrastructure unit and Hastings Funds Management Ltd. according to sources.
Borealis, the infrastructure arm of the Ontario Municipal Employees Retirement System, is teaming up with investors including First State Investments and Nordic pension funds, according to sources. Cheung Kong could be working with UBS AG on its potential offer.The grid may fetch about €2 billion euros and a decision on the winner is expected by December.
Espoo, Finland-based Fortum, the country's largest utility, is weighing sales of its distribution networks in the Nordic region to allow it to focus on generating power. Fortum also plans to sell its larger Swedish grid, which could be worth about €4 billion, next year.
Revenue from Fortum's grids in Sweden, Finland, and Norway totalled €1 billion in the 12 months through September 2012.
Reuters informed in September that Fortum had hired Citigroup and Danske Bank to explore a sale of its electricity distribution business in Sweden and Finland.
Country news
-
-
November 15, 2013
EU funds feasibility studies for E18 Hamina-Vaalimaa road PPP in Finland
The European Union will support with an amount of €2.4 million from the TEN-T Programme a series of studies aiming at preparing a section of motorway along Finland's southeast coast for a possible public-private partnership (PPP) procurement. The studies will contribute to the realisation of the "Nordic Triangle railway/road axis" (TEN-T Priority Project 12). Read more -
December 13, 2013
Borealis and first state buy 2.55b finnish grid
Fortum, a Finnish energy company, has agreed to sell its electricity distribution business in Finland to Suomi Power Networks Oy, a consortium led by international infrastructure investors First State Investments (40%) through First State European Diversified Infrastructure Fund and Borealis Infrastructure (40%) and completed by Finnish pension funds Keva (12.5%) and LocalTapiola Pension (7.5%). Read more -
December 16, 2013
OFI Infravia acquires electricity distribution network in Finland
OFI InfraVia's European fund II (InfraVia II), its second European infrastructure fund, has acquired Outokumpu's electricity distribution network located on the Tornio site in Finland. Read more -
January 29, 2014
Tender for Finnish E18 PPP in March
The Finnish government has published a Prior Information Notice (PIN) in the Official Journal of the European Union for the Design, Build, Finance, Maintain and Operate (DBFMO) of the Hamina-Vaalimaa section of the E18 highway. The notice said that the tender process is expected to begin in March 2014. Read more -
March 20, 2014
Tender launched for Finland's E18 road PPP
A tender for the second section of Finland's E18 highway PPP scheme has been issued. Read more
