The State sells its Ekokem shares to Fortum
The State of Finland will sell its 34.08 per cent interest in Ekokem Corporation, a circular economy company, to Fortum Corporation for EUR 198 million.
The State finds that the combination will improve the companies’ potential for commercialising new products and services as it will combine Fortum’s solid expertise in electricity and heat generation with Ekokem’s advanced expertise in waste processing and materials flows. At the same time, it will make it possible to create new innovations and identify new business opportunities. In particular, Fortum’s extensive international business network and expertise combined with its strong financial position are expected to drive growth internationally.
“This is an excellent solution for Finland. Combining the leading-edge skills and know-how of the two companies stakes out a path for growth that the State needs to enable as a responsible owner. The business combination now created will be a pioneer in Scandinavia, capable of offering a wide range of services on a broad front both in Finland and in the export sector. The energy sector is of key importance to society and its significance will only grow in the future,” says Prime Minister Juha Sipilä.
The State will assign its rights and obligations under the deed of sale to a business development company to be established later this year.
The transaction still needs to be approved by the competition authorities of Finland and Sweden. It is expected to be completed during the third quarter of the current year.
In addition to the State of Finland, the Association of Finnish Local and Regional Authorities, Ilmarinen Mutual Pension Insurance Company, and the Helsinki Region Environmental Services Authority HSY have announced that they will sell their shares in Ekokem to Fortum. The combined holdings of these four largest shareholders account for 81 per cent of Ekokem’s entire share capital.
Inquiries: Eero Heliövaara, Director General, eero.heliovaara@vnk, tel. +358 50 368 7016, and Jarmo Kilpelä, Senior Financial Counsellor, [email protected], tel. +358 295 160 154, Prime Minister’s Office
English translation of the press release published on 30 May 2016