Fortum has signed an agreement to sell its district heating business in the Järvenpää-Tuusula area in Finland to a consortium consisting of Vantaa Energy Ltd, Infranode, and Keva. The total consideration on a debt- and cash-free basis is approximately EUR 375 million (US$ 421.77 million). The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2020.

The transaction is a continuation of Fortum’s strategy execution, whereby Fortum continuously reviews its businesses to optimize its portfolio for value creation. In June 2019, Fortum announced it considered the strategic options for its district heating businesses in Estonia and in Joensuu, Finland. This resulted in the divestment of the district heating business in Joensuu in early January 2020. In February 2020, Fortum announced it would review and consider strategic options for the district heating businesses in Järvenpää, Poland, and the Baltics. In June 2020, Fortum agreed to increase its ownership to 100% in the Tartu district heating business in order to increase the flexibility in potential future options for the Estonian district heating businesses. The strategic review for the district heating businesses in Poland and the Baltics is still ongoing and proceeding according to plan.