Consortium acquires Fortum Distribution Finland for €2.55 billion

On March 24, 2014, Suomi Power Networks Oy, a consortium comprised of international infrastructure investors Borealis Infrastructure and First State Investments and which included Finnish pension funds Keva and LocalTapiola Pension, completed the acquisition of the Fortum Group's Finnish electricity distribution business, Fortum Distribution Finland, for a total consideration of €2.55 billion.

Fortum is the leading electricity distribution company in the Nordic countries with over 1.6 million network customers in Sweden, Finland and Norway.

First State Investments is the consolidated asset management division of Commonwealth Bank of Australia, the largest financial institution in Australia and currently manages approximately €124 billion of investments globally.

Borealis Infrastructure is a leading direct infrastructure investor managing a diversified global portfolio on behalf of OMERS and other institutional investors with an Enterprise Value in excess of C$60 billion, as of December 31, 2013.

Keva is a Finnish pension agency responsible for funding the earning-related pensions of public sector workers in state, municipal and state church positions. It serves approximately 1.3 million insured persons and pension recipients and as of December 31, 2013 its investments had a market value of €37.8 billion.

LocalTapiola Pension was the third largest provider of earnings-related pension insurance in Finland with approximately 260,000 insured and investment assets of approximately €9.9 billion as of December 31, 2012. In January 2014 it merged with Pension Fennia to become Elo Mutual Pension Insurance Company.

Further information can be found on Fortum's website.