Fortum Sells 50% Stake in Stockholm Exergi for $3.45 Billion

By Dominic Chopping

Finnish state-controlled utility company Fortum Oyj said late Wednesday that it has agreed to sell its 50% ownership in Swedish district heating and cooling company Stockholm Exergi Holding AB to a group of European institutional investors for 29.5 billion Swedish kronor ($3.45 billion).

The consortium comprises APG, Alecta, PGGM, Keva and AXA.

Fortum said the consideration is based on an enterprise value of SEK71.9 billion and the company expects to record a tax-exempt capital gain of around 2.4 billion euros ($2.85 billion).

The transaction is subject to customary closing conditions. Fortum expects closing to take place before the end of 2021.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

07-01-21 0155ET