2008-06-18

Fortum and Hafslund Infratek to combine infrastructure operations

Fortum will receive a shareholding of 33% in the new combined company

Fortum is to combine its business of construction and operating of critical infrastructure in Sweden, Finland and Norway with Norwegian Hafslund Infratek ASA. Fortum and Hafslund Infratek have signed a letter of intent with the aim to negotiate a final agreement to combine their infrastructure service operations.

As part of this transaction, Fortum will receive newly issued shares in Hafslund Infratek ASA. Fortum's ownership will amount to 33% of the combined company. Hafslund ASA, the majority shareholder of Hafslund Infratek, will hold 43.3% of the shares. The remaining shares are owned by institutional and private shareholders.

A combination of Fortum Service's infrastructure operations and Hafslund Infratek will create a powerful Nordic player within the field of building, operating and securing critical infrastructure, primarily energy carriers, telecom and security systems.

“The significant growth we see within the field of building and operating energy related infrastructure demands larger and more efficient suppliers. This combination will provide synergy benefits through competence exchange and more efficient utilisation of resources, thus creating a strong specialised player to the Nordic market”, says Markku Vauhkonen, President of Fortum Service.

The transaction concerns some 1,050 Fortum Service employees, approximately 750 of whom work in Sweden, 150 in Finland and 150 in Norway.

The final agreement will be conditional to approval by the Board of each company and the General Meeting of Hafslund Infratek ASA. The transaction is planned to become effective as of 1 January 2009.

Information about the company: Fortum Oyj