The Estonian government has given the Minister of Economy, Urve Palo, a green light to purchase a majority share of AS Võrguteenus Valdus, which owns the nation’s gas transmission network. Prime Minister Taavi Rõivas said at a press conference last week that the move would boost energy security in Estonia.The company is valued at around 60 to 70 million euros, with Fortum Heat and Gas OY owning a little over 51 percent, with Gazprompank (37 percent) and Itera Latvija (10 percent) also among the major shareholders.The company will be merged with Elering, the state-owned operator of electric power system network.
Selling Majority
Fortum has agreed to sell its 51.4%-shareholding in the associated company AS Võrguteenus Valdus to the Estonian electricity transmission system operator Elering AS. AS Võrguteenus Valdus is the owner of the Estonian gas transmission grid company AS EG Võrguteenus, which is the only gas transmission system operator in the country.The transaction is subject to regulatory approvals and customary closing conditions. Fortum expects to finalise the transaction latest during the first quarter of 2015. The sale is expected to have a minor impact on Fortum’s Q1/2015 result.
National Onership
The divestment of the shareholding in AS Võrguteenus Valdus is a part of the company’s efficiency programme launched in October 2012 and aiming at the disposal of non-core assets. The core of Fortum’s strategy lies in strong expertise in CO2-free hydro and nuclear power, resource-efficient combined heat and power (CHP) production as well as in operating in the energy markets. Furthermore, Fortum’s decision to sell is in line with the Directive 2009/73/EC of the European Parliament and of the Council and the Estonian Natural Gas Act that require ownership unbundling of natural gas transmission and gas sales.
Former Politician
Elering is owned 100% by the Republic of Estonia. Elering has a duty under the law and because of its ownership by the state to meet all expectations concerning transparency in the company. For this reason we take the publication of our performance indicators very seriously and with a full awareness of our responsibility, Taavi Veskimägi is a former Estonian politician and the managing director of the Estonian electric power transmission system operator Elering.He was a former Minister of Finance(2003–2005), says Senior Vice President Kari Kautinen,Fortum Corporation, Corporate Communications
Might invest in Hafslund
Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2013, Fortum’s sales totaled EUR 6.1 billion and comparable operating profit was EUR 1.6 billion. We employ approximately 8,800 people. Fortum owns 36 per cent of the Norwegian company Hafslund with the City of Oslo as the largest shareholder. Fortum’s shares are traded on the NASDAQ OMX Helsinki.
