Borealis Infrastructure, AP3, AP1 and Folksam Acquire Fortum Distribution AB for EUR6.6b
A consortium consisting of Borealis Infrastructure Management Inc, Tredje AP-Fonden (“AP3”), Första AP-Fonden (“AP1”) and Folksam with subsidiaries (the “Consortium”) has signed today an agreement to acquire 100% of the shares of Fortum Distribution AB, Fortum’s electricity distribution networks in Sweden.
Fortum Distribution AB is the second largest player in the electricity distribution market in Sweden. The company distributes electricity to approximately 900,000 customers, representing a market share of around 17 per cent, based on number of connections.
With the acquisition, Fortum Distribution AB will have new long-term, stable and supportive owners. The Consortium will continue to develop the Swedish electricity grid in order to safeguard reliable electricity distribution in the best interest of customers.
“On behalf of Borealis Infrastructure, we are very pleased to announce our first investment in Sweden alongside like-minded, long-term Swedish investors. Sweden’s strong regulatory framework and firm commitment to the rule of law make it an ideal place to invest. Fortum Distribution AB provides a strong match for OMERS long-term obligations to our plan members, and represents precisely the kind of rare, high-quality asset that fits squarely with OMERS strategy to increase its exposure to infrastructure,” said
Michael Rolland, Chief Investment Officer, OMERS Private Markets (Infrastructure and Private Equity).
The ownership shares in the Consortium are: Borealis Infrastructure – 50.0 per cent, AP1 – 12.5 per cent, AP3 – 20.0 per cent and Folksam with subsidiaries – 17.5 per cent. Completion of the transaction is expected during the second quarter of 2015. The acquisition is subject to customary regulatory approvals.