2003-07-08

Fortum sold Enermet to Industri Kapital for FIM 610 million.

Fortum Corporation has sold its wholly owned subsidiary Enermet Oy to the Industri Kapital 1994 private equity fund for FIM 610 million.

As a part of the new ownership structure, Industri Kapital will establish a holding company, Enermet Group Oy, which will acquire Enermet Oy. Investors through the Industri Kapital 1994 fund will hold 55% of the equity in Enermet Group. Fortum will invest FIM 75 million in Enermet Group corresponding to 30% of the equity. Furthermore MB Funds represented by Leonia MB Group will hold 10% of the equity. The management of Enermet will acquire 5% of the equity of Enermet Group. Esa Pennanen will continue as President of Enermet.

"Enermet is one of the businesses beyond Fortum1s core business, energy, and we have reported that we will dispose of these businesses. However, we want to continue developing and expanding Enermet1s international operations as a minority shareholder. This deal is not expected to lead to any reduction to the number of Enermet employees", Heikki Marttinen, Fortum1s President and CEO states.

"As the leading supplier of advanced metering systems and electronic meters we believe Enermet is uniquely positioned to benefit from the deregulated European energy markets", Björn Savén, Chief Executive of Industri Kapital says.

The deal is still subject to approval of several countries1 competition authorities.

Enermet specialises in energy measurement and load control. The company develops, manufactures, and markets electric energy and district heat meters, and energy measurement and control systems. Enermet Group has operations in ten countries and about 700 employees. In 1998, Enermet1s net sales totalled FIM 501 million, and the operating profit was FIM 53 million.

Industri Kapital is a leading Northern European private equity fund, with assets under management in excess of one billion Euros (FIM 6 billion). Since 1989 a total of 30 investments have been made in companies in various industries. The fund investors are mainly well-known Nordic, European and North American institutional investors.

Salomon Smith Barney is acting as financial advisor to Fortum.

Press Service

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