Following the fulfilment of customary closing conditions, Fortum said Friday it has concluded the sale of its district heating business in the Baltics to Partners Group, as announced on 12 March 2021.
At the time of signing, the 100% enterprise value was EUR 800 million. At the time of closing the total consideration of the sale amounted to approximately EUR 710 million following pre-agreed adjustments of minorities of some EUR 50 million and other closing items. Fortum will record a tax-exempt capital gain of approximately EUR 250 million in the City Solutions segment’s third-quarter 2021 results.
Fortum continuously reviews and optimises its business and asset portfolio to create value and enable new growth. At the same time Fortum wants to secure a strong balance sheet and the Group’s credit rating of at least BBB. Most recently, earlier this week, Fortum announced it will divest its 50% ownership in Stockholm Exergi.
“Over the past one and a half years we have determinedly executed our strategic transformation and sold mainly district heating assets and businesses worth approximately EUR 5.2 billion. With these successful divestments we have yet again demonstrated that we are constantly creating value for our shareholders and that we deliver on our strategy and our priority of maintaining a financially strong Group,” said President and CEO Markus Rauramo.
Strategic reviews of the heating and cooling businesses in Poland and the Consumer Solutions business are still ongoing.