Fortum Oyj : to Sell District Heating Business in Baltics for $956.3 Million

By Dominic Chopping

Finnish state-controlled utility company Fortum Oyj said Friday that it has agreed to sell its district heating business in the Baltics for 800 million euros ($956.3 million) to private markets firm Partners Group, acting on behalf of its clients.

"The divestment is in line with our portfolio optimisation and follows our successful divestments in Finland in 2020," said Per Langer, executive vice president, city solutions at Fortum.

"The assets raised large interest among buyers as the business transformation to lower carbon intensity for these assets has largely been done," he added.

Fortum expects to record a tax exempt capital gain of approximately EUR240 million upon completion, seen in the second quarter of 2021.

The company said it continues to conduct strategic reviews of its heating and cooling businesses in Poland, its 50% stake in Stockholm Exergi, and its consumer solutions business.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

03-12-21 0501ET