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Fortum sold Enermet to Industri Kapital
(Fortum 9.7.1999)
Fortum Corporation has sold its wholly owned
subsidiary Enermet Oy to the Industri Kapital
1994 private equity fund for FIM 610 million.
As a part of the new ownership structure,
Industri Kapital will establish a holding
company, Enermet Group Oy, which will acquire
Enermet Oy. Investors through the Industri
Kapital 1994 fund will hold 55% of the equity in
Enermet Group. Fortum will invest FIM 75 million
in Enermet Group corresponding to 30% of the
equity. Furthermore MB Funds represented by
Leonia MB Group will hold 10% of the equity. The
management of Enermet will acquire 5% of the
equity of Enermet Group. Esa Pennanen will
continue as President of Enermet.
"Enermet is one of the businesses beyond
Fortum's core business, energy, and we have
reported that we will dispose of these
businesses. However, we want to continue
developing and expanding Enermet's international
operations as a minority shareholder.
This deal is not expected to lead to any
reduction in the number of Enermet
employees", Heikki Marttinen, Fortum's
President and CEO stated. "This transaction
demonstrates Fortum's continuing commitment to
focusing on its core energy business in line
with our basic strategy and according to the
timetable targets we have set to
ourselves", Mr. Marttinen further stated.
"As the leading supplier of advanced
metering systems and electronic meters we
believe Enermet is uniquely positioned to
benefit from the deregulating European energy
markets", Björn Savén, Chief Executive of
Industri Kapital said.
The deal is subject to approval of several
countries' competition authorities.
Enermet specialises in energy measurement and
load control. The company develops,
manufactures, and markets electric energy and
district heat meters, as well as energy
measurement and control systems. Enermet Group
has operations in ten countries and about 700
employees. In 1998, Enermet's net sales totalled
FIM 501 million, and the operating profit was
FIM 53 million.
Industri Kapital is a leading European
private equity fund, with assets under
management in excess of one billion Euros (FIM 6
billion). Since 1989 a total of 30 investments
have been made in companies in various
industries. The fund investors are mainly
well-known Nordic and European institutional
investors.
Salomon Smith Barney is acting as financial
advisor to Fortum.
Fortum Corporation
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