Finnish state energy group Fortum in €800 million sale of Baltic businesses

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Fortum's Tartu power station. Source: ERR

Finnish state-owned energy group Fortum is selling its district heating businesses in the Baltic countries at a price tag of €800 million.

Swiss investment company Partners Group are the buyers, BNS reports.

The news is not unexpected; Fortum announced in 2019 that it was considering selling its Estonian businesses, reiterating this for all its Baltic States' concerns last year.

The company says it intends to finalize the transaction in the second quarter of this year.

Fortum owns remote heating businesses – meaning hot water piped into residences and businesses during winter, to meet their heating needs - in Tartu and Parnu, as well as in Daugavpils and Jelgava (Latvia) and Klaipeda, Lithuania.

Fortum also owns four combined heat and power (CHP) stations, the facilities which generate the hot water as a by-product in electricity generation which is then piped out, in these cities, along with a stake of 49 percent in a Kaunas, Lithuania CHP plant.

Fortum's Baltic businesses produced 1.4 Twh of thermal energy last year, plus 0.6 Twh of electric energy, and reported earnings before interest, taxes, depreciation and amortization (EBITDA) of €54 million for 2020.

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Editor: Andrew Whyte

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