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Transactions - OCTOBER 9, 2019

Fortum to acquire majority shares in Uniper

by Released

Fortum has agreed to acquire the shares held by funds managed by Elliott Management and its affiliates and Knight Vinke Energy Advisors and its affiliates, a total in excess of 20.5 percent.

Fortum will pay approximately €2.3 billion ($2.5 billion) for the combined shareholding, corresponding to €29.93 ($32.8) per share.

Upon closing of the transactions, Fortum’s share in Uniper will increase to more than 70.5 percent and the total investment in Uniper to approximately €6.2 billion ($6.8 billion), representing an average acquisition price of €23.97 ($26.2) per share.

Closing of the transaction is subject to customary regulatory clearances in Russia and the United States and is expected by the end of the first quarter of 2020.

The transaction will be financed with existing cash resources and committed credit facilities underwritten by Barclays Bank. Fortum will fully consolidate Uniper as a subsidiary in its financial statements from closing of the transaction.

“I am pleased that we have today taken this important step to create a leader in the European energy transition,” said Pekka Lundmark, president and CEO at Fortum. “I am convinced that this will create attractive opportunities for both companies and their employees. For Fortum’s shareholders this transaction will be earnings accretive. As always, this investment follows our prudent investment criteria to add value reflecting carefully managed risks.”

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