The acquisition of Fortum Distribution AB by Första AP-fonden, Tredje AP-fonden, Folksam and Borealis
Consortium acquires Fortum Distribution AB
MARCH 13, 2015
A consortium consisting of Borealis Infrastructure Management Inc., Third Swedish National Pension Fund (AP3), Folksam with subsidiaries and First Swedish National Pension Fund (AP1) (”The Consortium”) has today signed an agreement to acquire 100 % of the shares of Fortum Distribution AB, Fortum Corporation’s electricity distribution networks in Sweden.
– This is a rare investment opportunity that suits Folksam with subsidiaries particularly well, as we are a long term investor with long term obligations towards our customers. Also, the investment adds to our different asset portfolios, since it improves risk diversification and expected rate of return, says Folksam with subsidiries’ President and CEO Jens Henriksson.
Fortum Distribution is the second largest player in the electricity distribution market in Sweden. The company distributes electircity to 906.000 customers, representing a market share of approximately 17 per cent.
With the acquisition, Fortum Distribution AB will have new long term and stable owners. The Consortium will continue to develop the Swedish electricity grid in order to safeguard reliable and qualitative electricity distribution in the best interest of customers.
The ownership shares in the Consortium are: Borealis Infrastructure 50.0 per cent, AP3 20.0 per cent, Folksam with subsidiaries 17.5 per cent and AP1 12.5 per cent.
Completion of the transaction is expected during the second quarter of 2015. The acquisition is subject to customary regulatory approvals. Lenner & Partners acted as Folksam with subsidiaries’ advisor in this transaction.
Link to press release: