Fortum Oyj HLSE:FORTUM Stock Report

NOVATEK May Consider Buying Russian Assets of Finnish Fortum

Gazprom Ready to Mull over Buying Fortum's Russian Assets

Public Joint Stock Company Gazprom (MISX:GAZP) is ready to consider purchasing the Russian assets of Finnish power giant Fortum Oyj (HLSE:FORTUM) Gennady Sukhov, a member of the executive board of Gazprom, told PRIME on the sidelines of the St. Petersburg International Economic Forum. “We are ready to consider (the issue), … the cost needs to be assessed, whether it is competitive," he said. Kommersant business daily reported earlier in June citing sources that Fortum had launched collection of binding offers to buy its Russian assets. One of the key conditions is that the deal should be closed before July 1, 2022. According to the daily, Gazprombank is interested in all assets, and may finance the deal for Gazprom Energoholding paying $1.5 billion - $2 billion per each firm. In Russia, Fortum owns a producer and seller of electric and thermal power of the same name, a 29.5% stake in power utility Territorial Generating Company-1 (TGC-1), a 76.1% stake in international energy holding Uniper SE, which in its turn owns an 83.73% stake in Russian power producer Unipro.

Fortum Reportedly Plans to Sell All Russian Assets

Fortum Oyj (HLSE:FORTUM) has launched collection of binding offers to buy its Russian assets with the key condition being closure before July 1, 2022, Kommersant business daily reported on June 14, 2022 quoting sources. In Russia, Fortum owns a producer and seller of electric and thermal power of the same name, a 29.5% stake in Public Joint Stock Company Territorial Generating Company No. 1 (MISX:TGKA) (Territorial Generating Company-1 (TGC-1)), a 76.1% stake in Uniper SE (XTRA:UN01), which in its turn owns an 83.73% stake in Public Joint-Stock Company Unipro (MISX:UPRO). The sources told Kommersant that Gazprombank (Joint-stock Company) is interested in all assets, and may finance the deal for Gazprom Energoholding paying $1.5-2 billion per each firm, the business daily said. Other contenders include Public Joint Stock Company Inter RAO UES (MISX:IRAO), which plans to file offers for Unipro and Fortum, and Siberian Coal Energy Company (SUEK), which is interested only in Unipro. According to the sources, independent gas producer Novatek also expressed interest in assets of Fortum. Collection of the offers should be finished until June 21, 2022.

Infracapital Partners III (Euro) SCSp a fund managed by Infracapital agreed to acquire the remaining 30% stake in Fortum Recharge AS from Fortum Oyj (HLSE:FORTUM) for €80 million.

Infracapital Partners III (Euro) SCSp a fund managed by Infracapital agreed to acquire the remaining 30% stake in Fortum Recharge AS from Fortum Oyj (HLSE:FORTUM) for €80 million on June 10, 2022.

Hafslund Eco AS, Infranode Ab and HitecVision AS (OTCNO:HITV) completed the acquisition of 50% stake in Fortum Oslo Varme AS from Fortum Oyj (HLSE:FORTUM).

Hafslund Eco AS, Infranode Ab and HitecVision AS (OTCNO:HITV) signed an agreement to acquire 50% stake in Fortum Oslo Varme AS from Fortum Oyj (HLSE:FORTUM) for NOK 10 billion on March 22, 2022. The consideration will be paid on a cash and debt free basis. The consideration is based on a 100% enterprise value of NOK 20 billion. The transaction is subject to approval by the Oslo City Council (Bystyret), necessary regulatory approvals and fulfilment of the customary closing conditions. The closing of the transactions is expected during the second quarter of 2022. Danske Bank A/S, Finland Branch acted as financial advisor to Fortum Oyj in the transaction. Andrew Congleton and Nipun Narang of DC Advisory acted as financial advisor to Hafslund Eco AS, Infranode Ab and HitecVision AS. Hafslund Eco AS, Infranode Ab and HitecVision AS (OTCNO:HITV) completed the acquisition of 50% stake in Fortum Oslo Varme AS from Fortum Oyj (HLSE:FORTUM) on May 19, 2022.