Finnish energy group Fortum will sell its district heating business for 800 million euros Baltic countries to the Swiss investment firm Partners Group, the company said in a statement.
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Fortum plans to complete this transaction in the second quarter of 2021.
The company announced last year that it was considering the possible sale of the heat supply business in the Baltic States and Poland.
In Latvia, Fortum provides heating in Daugavpils and Jelgava, in Estonia in Tartu and Pärnu, and in Lithuania in Klaipeda.
In the Baltics, Fortum generated 1.4 terawatt hours of heat and 0.6 terawatt hours of electricity last year and earned earnings before interest, taxes, depreciation and amortization (EBITDA) of 54 million euros.
Last September, Andris Vanags, Chairman of the Board of Fortum Latvia, told LETA that the entire business infrastructure in the Baltic States and Poland as a whole had been assessed for sale, and Fortum Latvia did not yet have precise information about a new potential investor.
He said that Fortum’s infrastructure in Latvia is not one that could be moved or taken to another country, so customers in Jelgava and Daugavpils, where Fortum operates, should not worry that the company providing the service would change investors.
“Every investor who comes in will do so with the aim of continuing and developing economic activity. Perhaps a new investor will have even higher growth ambitions, and this could help the Latvian company to develop more successfully in the future. I do not see a change of potential investor as something negative.” In September 2020, the head of Fortum Latvia noted.
SIA “Fortum Jelgava” was registered in 2001, and its share capital is 2.223 million euros, according to “Firmas.lv” information. The company’s turnover in 2019 was 9.704 million euros, but the profit – 693,924 euros. Fortum Jelgava is owned by Fortum H&C 1 BV, registered in the Netherlands.
SIA “Fortum Daugavpils” was registered in 2006 and its share capital is 284,573 euros. The company’s turnover in 2019 was 3.965 million euros, but the profit – 285,683 euros. The sole owner of Fortum Daugavpils is SIA Fortum Latvia, which is owned by Fortum H&C 1 BV in the Netherlands.
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